Business & Economy
Gateshead’s Bloom aims to flower after £14 million BGF investment
April 15, 2021
A procurement firm says it will “rapidly scale and create a great case study for entrepreneurship and growth in the North East” after securing £14 million support.
Bloom Procurement Services has been backed by growth capital investor BGF.
Bosses say Gateshead-headquartered Bloom is the UK’s only public sector procurement marketplace, offering an end-to-end managed service procurement solution.
Founded in 2011 by executive chairman Adam Jacobs, they say its services enable public sector buyers to compliantly and transparently award public sector contracts and achieve significant savings.
To date, it has transacted more than 7500 projects, with a value of £800 million, across all parts of the public sector.
Adam [pictured below] said: “BGF stood out as the investment partner for us at this stage in our development.
“The team demonstrated a good understanding of our business and market and have a clear track record of successful investments in a similar space.
“They are backing a business with enormous growth potential and the BGF partnership emboldens our ambition to rapidly scale the business and create a great case study for entrepreneurship and growth in North East England.”
Under the terms of the deal, Amabel Grant has been made chief executive, having joined the business in 2018 as chief technology officer.
Non-executive director Diane Cheesebrough will move to non-executive chair.
Barry Jackson and Rob Johnson, of BGF, led the investment.
Barry said: “Adam and Amabel are a powerful combination and Bloom is a unique asset, which has access to a large market and the potential to rapidly scale.
“This is a business offering a best-in-class solution, delivering results for its users and driving social value throughout the supply chain.
“We’re looking forward to working with the team to achieve our shared ambitions for Bloom.”
Bloom’s marketplace enables public sector buyers across central and local government, housing associations, the NHS, universities, schools and non-departmental public bodies to deliver against their social value goals.
Advisors to BGF were Cavu Corporate Finance (Shawn Bone, Thomas Brunsnes) and Squire Patton Boggs (Paul Mann, Craig Pettit).
Advisors to Bloom were KPMG (Christian Mayo, Michael Downes) and Cooley (Stephen Rosen, Charlotte Lennon).
Michael, a director in KPMG’s corporate finance team in Newcastle, added: “It’s been a pleasure working with Adam, Amabel and the team at Bloom on this transaction.
“The deal is another example of the appetite from investors to back entrepreneurial tech-enabled businesses in the region.”