European private equity firm Exponent agreed to invest in Hippo Digital, a UK-based digital transformation specialist known for its work with NHS England, the BBC, and various government departments.

The deal, expected to close by early April, will support Hippo’s continued expansion and enhance its engineering, data, and artificial intelligence capabilities.

Founded in 2016 by Adam Lewis and Rob Coop, Hippo Digital has grown into a key provider of user-centric digital services for the UK public sector. Initially focused on digital identity and product management solutions for the NHS, the company has expanded its offerings through both organic growth and strategic acquisitions. In 2023, Hippo acquired fellow Leeds-based firm The Data Shed, a move that won the Deal of the Year (£5m-£25m) at the Insider Yorkshire Dealmakers Awards.

Hippo now operates with 500 employees across six UK offices, serving clients in healthcare, government, finance, education, travel, and leisure. Exponent’s investment will help scale its operations further, with Paul Nannetti joining as chair.

Mark Taylor, partner at Exponent, said, “Hippo plays a critical role in delivering the government’s digital transformation agenda. It stands out as a trusted leader in UK tech innovation, and we see a strong opportunity for the business to expand its capabilities.”

Barbara Rauber, director at Exponent, added, “Our investment reflects Exponent’s commitment to high-growth businesses with market-leading potential. Digital transformation is a fast-growing sector, and Hippo is well-positioned to take advantage of increasing demand.”

Hippo’s CEO and co-founder, Adam Lewis, welcomed the deal, stating, “This partnership with Exponent marks an exciting next chapter for Hippo. Their investment will provide the backing we need to scale further as one of the UK’s leading digital consultancies.”

The transaction remains subject to regulatory approvals.