HgCapital acquires Baldwins to create CogitalGroup

CogitalGroup, backed by accounting services and technology investor HgCapital, announced an investment in Baldwins, one of the UK's largest firms of independent accountants, on Wednesday.

The terms of this transaction were not disclosed, and the London-listed firm described Baldwins as a fast-growing firm of accountants focused on accounting, tax and related services to the entrepreneurial segment of the UK economy.

It said the firm has 27 offices across the UK employing 650 people, and has grown rapidly based on high quality client service and a series of acquisitions.

Baldwins plans to continue its strategy of acquiring quality firms as it builds out its regional network of practices, with its existing management team continuing to lead and drive the strategy.

“We undertook significant diligence on who to work with in relation to our future investment partners and we are delighted to have the opportunity to join CogitalGroup and work with HgCapital,” said Baldwins director John Baldwin.

“We are also pleased to welcome John Connolly onto our board who, with his undoubted background as former global chairman of Deloitte, will bring a level of expertise and experience necessary to achieve our goals and aspirations.”

The Baldwins investment followed an announcement that HgCapital has agreed the acquisition of Visma BPO, a leading provider of outsourced accounting, payroll and HR services to 20,000 businesses in the Nordic region.

Visma BPO brings leading technology that both assists practice accountants in the delivery of their service, HgCapital’s board said, and also enhances the client experience through easier and more effective client-adviser collaboration.

“We are very happy to be joining this new group and retaining a relationship with HgCapital which has been a long term shareholder in Visma,” said CEO Nordics and international Roar Wiik Andreassen.

“I am confident that we will develop in the right direction and further strengthen our services and solutions in the future.”

In July, HgCapital also announced an investment in Blick Rothenberg, a UK leading provider of accounting, audit and tax services based in London.

Blick Rothenberg, Visma BPO and Baldwins will form the newly launched CogitalGroup with each business continuing with their existing brands.

The CogitalGroup, chaired by John Connolly, former global chairman of Deloitte and for 12 years CEO of the UK firm, has been established to create a new presence in the advisory services market.

When the transactions complete over the next few weeks the group will have over 3,200 people based in Norway, Sweden, Denmark, Finland and the UK and with a significant nearshore centre in Romania.

The proforma group revenue will be £300m, HgCapital claimed..

“This is a major landmark for CogitalGroup and is part of our strategy to build a different kind of advisory business, underpinned by exceptional levels of innovation and client-focused service,” said John Connolly.

“We are extremely excited about our future and strongly believe that there is a place in the market for a firm focused on entrepreneurial businesses and high net worth individuals, delivering a personal service whilst harnessing the value-enhancing role of technology.

“Baldwins is a company I have known and admired for some time and I am delighted that we now have the opportunity to work with John and his team. Along with our colleagues at Blick Rothenberg and Visma BPO, they will help take CogitalGroup to the next level.”