A former owner of Dreams and ScS has bought a recently-rebranded Manchester customer acquisition specialist for the legal sector.
Sun European Partners has snapped up Didsbury-based Blume, which changed its name from mmadigital in September.
Blume said the deal will give it "greater scale and reach" and help "accelerate its growth" in the legal services market. It will also allow the business to "further invest in its marketing operations".
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The financial details of the deal, which is subject to approval from the Financial Conduct Authority, have not been disclosed. However, Blume said the deal puts it on track to reach £30m in sales next year.
Sun European Partners has invested in more than 475 companies worldwide since 1995 and has revenues of more than $50bn. It acquired Southport-headquartered Fletchers Solicitors in October 2021 for an undisclosed sum.
Following the acquisition, Blume's chief executive Dez Derry will continue to lead the group and join a wider leadership team which will also include its chief operating officer Steve Evans and Fletchers’ chief marketing officer Alex Kenny.
Once the transaction completes, Blume will join an expanded Fletchers Group and take responsibility for Fletchers’ consumer operations including The Medical Law Network, a marketing network for medical negligence law firms owned by Fletchers and its customer-facing brand, Patient Claim Line.
Blume was founded in 2012, has been backed by Rockpool Investments since 2021 and acquired Online Legal last month. Rockpool Investments will now exit the business.
Mr Derry said: "We are thrilled to be partnering with Sun and Fletchers who share our vision, ambition and appetite for innovation. This is a landmark transaction for Blume which will take the business to the next level, giving us the ability to rapidly grow our foundation in partnership with a very strong capital partner.
"The added firepower provided by Sun’s investment, and the opportunity for Blume to build on Fletchers’ Patient Claim Line brand and its panel of law firms is a compelling proposition for the market. It will allow us to continue to help our clients prosper by providing more choice and flexibility through a wider portfolio of products and services.
"We have built an exceptional team and this deal will open up some new and exciting opportunities. The future for Blume is brighter than it has ever been, and I would like to thank everyone who has played a part in this fantastic development."
Alex Wyndham, principal at Sun European Partners, added: "Dez and his management team have built a great business through a successful track record of organic growth and acquisitions, and we look forward to working with them to further maximise Blume’s potential.
"The transformation of the legal landscape in recent times makes this an exciting time for M&A. Areas that are insulated from recession such as personal injury and medical negligence means legal services is an attractive proposition, and this acquisition gives us a strong foothold in the sector.
"We are focused on seeking out and nurturing promising scale-ups such as Blume to help build the industries of the future and our expectation is that we will be completing more deals in this sector during the next 18 months."
Peter Haden, CEO of Fletchers Group, said: "The acquisition of Blume brings a high quality, growth-focused business to the group and creates the UK’s leading medical negligence customer acquisition specialists in the UK.
"While our legal practice will operate as a separate entity, we are two highly complementary teams and big champions of the benefits that technology can bring to the sector, both as suppliers to law firms and to improve our service to clients.
"We are looking forward to working with Dez and Steve to support Blume’s growth, and to accelerate its market presence by leveraging our brands and customer acquisition expertise.
"In addition, Fletchers will continue to invest in growing our legal practice, with a focus on Serious Personal Injury, Medical Negligence and Court of Protection."
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