ICG in talks to buy stake in Southern Communications Group - report

(Sharecast News) - London-listed investor ICG is reportedly in talks to buy a stake in telecoms provider Southern Communications Group at a valuation of over £700m. According to Sky News, ICG has entered exclusive negotiations about a transaction that would see it acquiring a large minority stake in SCG.

Based in Hampshire and founded in the 1960s, SCG has grown over three decades under the leadership of boss Chris Bradford. The company is focused on the UK small and medium-sized business sector, and has a particular strength in the healthcare industry, where it supplies communications software to a sizeable chunk of GP surgeries, Sky said.

One telecoms industry source told Sky that if successfully completed, a deal would involve ICG buying roughly 40% of SCG as part of a broader recapitalisation.

It was understood that the company, which employs about 900 people, is being advised by bankers at Houlihan Lokey. Its last major transaction came in 2021, when Ares Management backed a management buyout. Prior to that, it was part-owned by Livingbridge, another financial sponsor.

Industry sources told Sky several other private equity firms had also tabled offers for an SCG stake in recent months.

At 1100 GMT, ICG shares were down 1.8% at 1,707p.