Restore has entered into an agreement to acquire Rainbow HoldCo Limited, which trades as EDM Group Limited (EDM) for £61 million. EDM is a UK-based information management company offering solutions to large and medium-sized enterprises and public sector across four key solution areas: records information management; digitisation; digital mailrooms and digital solutions.
The acquisition represents a strategically important acquisition for Restore. With 74% of EDM revenue derived from digital solutions, the addition of EDM doubles the size of Restore’s existing digital business. It creates a stronger UK business which will benefit from operating as a larger platform, with the ability to deliver both cost synergies and cross-selling opportunities through accessing the wider service offerings.
The combination with EDM also unlocks the group’s product roadmap around digital mailroom, cloud and business process outsourcing, fast-tracking Restore’s delivery against its strategic growth objectives. 26% of EDM revenue is from physical records storage, adding approximately 1.9 million boxes across three sites, and thereby also increasing the group’s storage base by approximately 10%.
Restore has a clearly articulated growth strategy, which remains unchanged notwithstanding the challenges presented by COVID over the last year.
Following the initial impact of COVID-19 in the first half of 2020, the company has demonstrated a strong recovery and the acquisition of EDM is an important step as it looks to the future.
Chief Executive Charles Bligh, said: “This acquisition is in line with the growth strategy of the business outlined over the last two years, which is to grow our records management business and to enhance the product portfolio and market share in Restore digital.”