BGF, which targets established UK-based companies with strong growth potential, has taken a minority stake in Adestra, marking the first institutional investment in the company since its founding in 2004.
With 500-plus clients worldwide across a number of key sectors, Adestra has experienced annual double-digit revenue growth for more than a decade. Earlier this year, Adestra also announced the opening of its US operations in Dallas and New York, the success of which was a significant factor in Adestra’s decision to partner with BGF, says Adestra.
“This is a very exciting time for our business,” said Henry Hyder-Smith, co-founder and CEO of Adestra. “Email is experiencing a fantastic and well-founded resurgence as the cornerstone of a brand’s digital communications strategy. As a result, we’ve seen an enormous amount of high-profile acquisitions and consolidations in our industry, but those moves have also created a real void in the market – one that Adestra is poised to fill.”
“The investment by BGF is not only a validation of our business model, but it will also help fuel our US growth in a way that is consistent with Adestra’s customer-driven approach.”
Adestra will use the investment to expand its US-based team and provide them with the infrastructure they need to support the growing demand for the company’s services.
“BGF takes a long-term view when evaluating investment opportunities. Henry and his senior management team have a fantastic track record of delivering innovative digital marketing services that are valued by Adestra’s diverse range of customers,” said James Austin, an investor at BGF. “Their dedication to their clients’ success has made them a go-to resource in the UK and has them poised to make a significant mark in the U.S. and beyond. BGF is looking forward to supporting the team as it continues to scale its business.”
The investment was managed for BGF by James Austin, Sarah Ledwidge, Dan Tapson and Erin Hallock. As part of the deal, BGF Investor James Austin also will join the Board of Adestra. To date, BGF has invested close to £650m from its £2.5bn investment pool, including more than £130m in the UK’s technology, media and telecommunications (TMT) sector.
