An ambitious new buy-and-build outfit is emerging in the channel in the form of Telinet Group.
Following its acquisition of IBM partner Pasporte (CRN Online, 2 June), Telinet is hunting for further targets in the IT services and networking space to help it break through the £100m turnover barrier. It also recently bought VARs Newburn and Evolution Voice and Data.
Telinet’s shopping spree is backed by investment bank Investec, which took over the firm in 2006. Pasporte takes its turnover to £35m.
Gary Woodward, chief executive of Pasporte, said: “We felt the time had come to be part of a bigger organisation with potentially more funds available to grow through acquisition. The plan is to get to £100m turnover as soon as possible and go onwards and upwards from there.”
As part of the £11m deal, Pasporte management took a stake in Telinet’s
holding company, Acraman. Woodward stressed the Pasporte name would live on and
may take the lead as the group rebrands.
Ian Smith, chief executive of acquisitive IBM reseller Xploite, said: “We looked at Pasporte previously and it is a very good business.
“Telinet started off as a PBX reseller and is trying to cover all the bases. Moving into managed services is its best move yet and it has the backing of a sizable organisation in Investec.”
Jason Rabbetts, managing director of VAR Union Solutions, told CRN: “If you have a good business plan and track record and can buy at the right price, a roll-up is always a good strategy. It is also a good time to execute one if you already have the money, as lots of businesses are undervalued.”
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