ECI's major stake in Croud to help 'further accelerate strategic acquisitions and organic growth'

Investment from ECI in Croud will  enable the Shropshire company's leadership team to continue scaling as a global leader in digital-first, tech-enabled marketing over the next five years. 

The transaction marks an exit for LDC, the private equity investor which is part of Lloyds Banking Group, following a successful five-year partnership with Croud. 

LDC made a £30m minority investment in Croud in 2019, backing co-founders Luke Smith and Ben Knight to accelerate global growth and M&A activity, and the business has since grown threefold. 

Luke Smith, Founder & CEO of Croud, said: “We’re delighted to be partnering with ECI for the next phase of Croud’s journey, maintaining our independence, while capitalising on new opportunities and innovation. 

"This sale marks a significant milestone in our long-term growth plans. We ran a competitive and thorough search to find the right partner.

"We chose ECI for their expertise in our space, their shared passion and enthusiasm for Croud and we felt a strong cultural alignment with them. 

”“We’ll use this partnership to further accelerate strategic acquisitions and organic growth. As we’ve been saying for a while, there’s so much ahead of us as a business.

“We thank David Andrews and the LDC team for being a supportive and impactful partner over the past five years. We are very much looking forward to the next chapter with ECI." 

ECI has a successful track record in media, data and technology investments including MiQ, Investis Digital, Imagesound and Clarity Blue. 

In partnership with ECI, Croud is set to expand the business through further acquisitions and organic growth. 

The investment will enable Croud to retain its leadership in media, data and creative services benefiting current clients, such as Amazon Prime, Aston Martin, Coach, Nespresso and the VF Group, including Timberland, who will continue to access the most competitive marketing capabilities. 

Rory Nath, Investment Director at ECI, said: “We were impressed by Croud’s digital-first strategy, investment in tech and AI, and commitment to talent, as demonstrated by their recognition in Campaign and Sunday Times’ Best Place To Work lists. 

"The business has outperformed the market through its Croudie model, ensuring speed, scale, and efficient delivery for clients. 

"We look forward to continuing to invest in the technology and people alongside Luke Smith and Ben Knight whose energy, focus and determination will help inspire the team to deliver our ambitious vision together.” 

David Andrews, Partner at LDC, added: “When Luke and Ben founded Croud in 2011, they brought a truly disruptive mindset to an established market. 

"Their ability to innovate and invest in the right areas has set them apart from the competition and underpinned their remarkable growth, both here in the UK and overseas. 

"They’ve also achieved this while continuing to create opportunities for their people and being independently recognised as a great place to work. 

"It’s been a real pleasure to support their vision over the past five years and seeing them move into their next chapter with ECI is something we’re incredibly proud of, and a testament to the world-leading agency they founded and built together.”