Logistics Development Group invests £10m in tech leader Nash Squared

In a significant move within the technology solutions and talent acquisition sector, Logistics Development Group (LGD) has announced that its wholly owned subsidiary, Fixtaia Limited, has completed a £10 million investment into Nash Squared, a global leader in technology solutions and talent acquisition. This investment, part of a larger refinancing effort by Nash Squared, positions both companies at the forefront of global technology innovation and workforce development.

The investment involves Fixtaia subscribing for £10 million fixed rate unsecured 15% series A loan notes and payment in kind (PIK) notes issued by The Power of Talent Midco Limited (Midco). Midco, a special purpose entity, oversees the operating companies within the Nash Squared group. This financial arrangement, set to mature by 9 February 2027, underscores the strategic nature of the investment, fostering growth and expansion in key technology markets worldwide.

Founded in 1998, Nash Squared has emerged as a pivotal player in the technology services industry, boasting a workforce of approximately 3,000 employees and serving a prestigious blue-chip customer base from its delivery centers in Vietnam, India, and Central America. The company’s vast reach and innovative approach have made it the largest foreign employer of software developers in Vietnam, highlighting its significant impact on the global technology landscape.

Nash Squared’s financial performance for the year ending 31 January 2023 showcases its strong market position, with EBITDA (pre-exceptionals) reported at £34.4 million—a 17% increase from the previous year, on revenues of £748.4 million. These figures reflect the company’s robust growth trajectory and its substantial contribution to the technology sector’s development.

Given the close association between Nash Squared and DBAY Advisors Limited, LDG’s investment manager and significant shareholder, this transaction is classified as a Related Party Transaction. LDG’s independent directors, after consultation with Strand Hanson, the company’s nominated adviser, have deemed the investment terms to be fair and reasonable, ensuring alignment with shareholder interests.

This strategic investment by Logistics Development Group into Nash Squared not only signifies a strong vote of confidence in Nash Squared’s business model and market potential but also highlights the growing importance of strategic partnerships in driving innovation and growth within the technology sector.