BT gears up for channel M&A

BT is poised to resume its channel shopping spree and is expected to announce its first reseller acquisition since Lynx and Basilica next month.

The telecoms giant has appointed former Lynx boss Paul Edgeley to oversee its IT services and infrastructure mergers and acquisitions strategy and is believed to have set itself a £1bn mid-term revenue goal.

Meanwhile, Basilica’s managing director, Nick Gorringe, has been handed dual control of Basilica and Lynx, suggesting that BT is planning tighter integration of the two VARs and a potential brand overhaul.

Although BT remains tight-lipped, it is understood the carrier is hunting for managed services or software-as-a-service specialists to boost its recurring revenue streams.

IBM and Sun partners are also thought to be high on its wish list.

Rob Tomlin, sales director at IBM distributor Interface Solutions, said: “BT is going to be a major player in the IT infrastructure and services market and I would not be surprised to see it make a number of strategic acquisitions in various channels, including hardware and software.”

The boss of a large corporate reseller, who wished to remain anonymous, said: “BT is certainly on an acquisition spree right now, but we do not see it as a direct competitor.

“It may have its fingers in a lot of little pies, but we have not seen it make anything credible out of any of it yet. Lots of small acquisitions do not make one cohesive, successful organisation,” he added.

BT declined to comment on its future strategy, but said: “Nick and his team will continue to work to
create a portfolio of converged communication and IT technologies for UK business.”