If you’ve noticed changes in your IT provider, higher prices, slower support, or a more rigid service model, you’re not imagining it. Across the UK, investor-owned firms also known as private equity (PE) firms have been rapidly acquiring IT support providers, and many SME customers are feeling the consequences.
In Part 1 of this series, we explored why big investor firms are aggressively buying IT providers and how those takeovers impact SMEs. Now, in Part 2, we’ll look at:
- Real-world case studies of IT providers that changed after a buyout
- A full list of Investor Owned vs. Independent IT support firms in London
- How to choose an IT provider that won’t put investors before customers
By the end, you’ll have a clear roadmap to making an informed IT decision, whether that means staying with your current provider, renegotiating your contract, or switching to an independent IT support company.
Case Studies – What Happens When IT Support Firms Get Acquired?
The best way to understand how these takeovers affect service is to look at real examples. The case studies below reveal the patterns many SMEs experience after their IT provider gets bought.
Case Study #1: Content+Cloud (Formerly IT Lab) – Acquired by PE Firms Multiple Times
Before the Buyout:
IT Lab, later rebranded as Content+Cloud, was one of the UK’s leading Microsoft-focused IT service providers. It earned a strong reputation in the London SME market for delivering personalised, high-touch support.
What Changed After Acquisitions?
In 2016, IT Lab was acquired by ECI Partners and began a period of rapid expansion, acquiring several other UK-based IT companies. Then in 2021, Content+Cloud was acquired by Advania, a Nordic IT group backed by Goldman Sachs, one of the world’s largest investment firms.
While these acquisitions enabled Content+Cloud to scale and offer a broader range of services, growth of this kind often leads to changes in how services are delivered.
Industry research shows that when IT providers are absorbed into larger investment-backed groups, services often become more standardised, leaving fewer options tailored to smaller businesses.
Support may shift toward centralised helpdesks, and contracts are often restructured to suit larger, enterprise-style clients.
The result? Less flexibility for SMEs, fewer personalised solutions, and a service model that feels more corporate than consultative.
In most cases, multiple ownership changes create a “chain reaction,” where each new parent company introduces its own priorities, often focused more on growth and profitability than long-term customer relationships.
Case Study #2: Babble – 28 Acquisitions in 2.5 Years
Before the Buyout:
Babble started as a cloud communications and IT provider with a strong focus on SMEs. It was known for personalised service and close client relationships, positioning itself as a hands-on partner for small businesses.
What Changed After Acquisition?
In 2017, Babble secured investment from LDC. Then in 2020, the company was acquired by Graphite Capital in a £90 million deal.
Backed by Graphite, Babble entered a period of rapid expansion, acquiring 28 IT and communications firms in just over two years. This aggressive growth helped Babble scale quickly into a national player. The company grew significantly in customer base, staff, and geographic reach. But with that level of consolidation comes complexity.
While Babble’s growth has been impressive, rapid acquisitions like these can often pose challenges with integration, consistency, and service delivery. This is especially true for SME clients who were used to more personal support.
Industry research highlights that fast-paced consolidation can lead to temporary disruptions as systems, support teams, and service models are restructured.
For SMEs, this kind of transition may bring shifts in support responsiveness, service flexibility, and account familiarity. Over time, the experience can start to feel more corporate and less consultative.
Case Study #3: Six Degrees Group – From Local Star to Private Equity Project
Before the Buyout:
Six Degrees (6DG) started as a high-growth London IT provider, acquiring multiple smaller firms. It gained a strong reputation for SME and mid-market IT services.
What Changed After Acquisition?
6DG was initially backed by Penta Capital, then later acquired by Charlesbank (a US investor-owned firm). The company underwent massive restructuring to maximise investor returns.
While this strategy positioned Six Degrees for expansion and increased its capabilities, rapid growth through acquisitions can introduce complexities. Industry observations suggest that such aggressive consolidation efforts may lead to challenges in integration, consistency, and service delivery. For SMEs accustomed to personalised support, these changes can sometimes result in experiences that feel more standardised and less tailored.
It’s important to note that while Six Degrees aimed to enhance its service portfolio and market reach through these acquisitions, the impact on client experience can vary. SMEs considering partnerships with rapidly expanding IT providers should assess how such growth strategies align with their specific needs and expectations.
Across all three case studies, the SME experience follows the same arc:
The same provider, before and after the buyout
The provider you chose
- Personalised, high-touch support built around your business
- Close client relationships and a familiar account team
- Flexible service tailored to a smaller company’s needs
The same provider, before and after the buyout
The provider after consolidation
- Standardised packages aimed at enterprise-style clients
- Support shifted to centralised, less familiar helpdesks
- A relationship that feels more corporate than consultative
With Sereno
Without Sereno
Multiple ownership changes don’t always mean worse service, but they do mean your interests are now competing with investor return targets. That’s a structural shift worth understanding before you sign a contract.
The Full List of Investor Owned vs. Independent IT Support Firms in London
Knowing which IT providers are investor owned vs. independently owned can help SMEs make better IT decisions. Download the full list to see exactly who owns who in the London market.
How to Choose an IT Provider That Won’t Put Investors First
Key Questions to Ask Before Choosing an IT Provider
Ask before you sign
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Who owns the company?
Are they independent, or investor owned? The answer shapes every incentive behind the service you’ll receive.
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Have they been recently acquired?
If so, expect potential service changes as new owners introduce their own priorities.
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What's their contract model?
Are you locked into long-term agreements, or is there a fair way out if service slips?
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How do they handle support?
Do they still offer personalised, SME-focused service, or a standardised, one-size-fits-all model?
If you’re unhappy with your IT provider, now is the time to explore your options.
Making the Right IT Choice for Your Business
Multiple ownership changes don’t guarantee worse service, but they do mean your interests are now competing with investor return targets. Knowing who owns your provider tells you who they’re really working for.
Investor-led buyouts have reshaped the IT support industry, but SMEs still have choices.
If your IT provider has been acquired (or is showing warning signs), don’t wait until service declines. Use the insights in this post to assess your current provider and explore independent alternatives.
From Sereno IT
The Sereno IT team
Sereno IT is a London-based managed IT support provider helping businesses across the UK stay secure and productive. Read more in the Managed IT Support section.
