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07 Sep 2010
SCC has leapt dramatically back into the acquisition game by snapping up storage integrator Kavanagh for an undisclosed sum.
Operating in seven countries and boasting a turnover of £2.5bn, privately-held SCC hasn’t made a UK acquisition since 2007, when it grabbed the assets of online reseller IT247.com.
SCC said Kavanagh’s consultancy team would complement its cloud computing skills and boost its standing in the data centre. It added that Kavanagh will trade as SCC with immediate effect.
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James Rigby chief executive of SCC UK said: “We are seeing fast growth around applications, server and desktop virtualisation and, especially, data centre transformation to facilitate and enable cost reduction and service improvement. As a result of the acquisition, we have considerably enhanced our ability to provide specialist consultancy in these areas.”
Rob Campbell, managing director of Kavanagh, said: “Kavanagh has gained a strong reputation for delivering complex projects which has resulted in a high quality client base. Under SCC the company will benefit from financial stability and will continue to grow and develop further solutions in the data centre.”
HP specialist Kavanagh made a loss of £1.6m on turnover that fell 15 per cent to £24.9m in its last reported fiscal year, although claims to have seen a pick up in its performance since then.
Some onlookers argued that the Bracknell-based outfit had become hampered by its laser focus on storage and rumours that the firm was searching for a buyer have been in circulation for a while.
Simon Aron, joint managing director of integrator Eurodata, said: “We have come up against Kavanagh on numerous occasions and they are a good, reputable company. But they focus on one particularl type of technology – storage – and this is too narrow for today’s market."
Tom Kelly, UK managing director of Logicalis, said: "This is yet another bit of industry consolidation which I think will continue for a while to come."
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