TSG pounces on Leeds VAR in latest buy

It seems there is no stopping Sage founder Graham Wylie's Technology Services Group, which has just made its seventh acquisition in 10 months.

The company has expanded into the Yorkshire region with the acquisition of Leeds-based reseller Baron Corporate Systems (BCS), for an undisclosed amount.

BCS has about 500 customers using products from Sage, Pegasus and SAP.

TSG now has nine locations in Scotland and the north of England, and it has been widely rumoured that it is looking at moving into the south-eastern region soon.

Nigel Hudson, group director at TSG, said the firm intends to continue to grow, and told CRN further acquisitions are in the pipeline.

He said: "We are keeping all the businesses local, because that's what customers want at the SME level. They need people that can react to their needs from around the corner. All the companies we have acquired have been successful in doing this."

Gary Turner, managing director of Pegasus, said the vendor is "very relaxed" about the acquisitions.

"TSG has bought the largest Pegasus VAR in Scotland [ISS] and the largest Pegasus VAR in the north [Joynson], which makes it one of our top three VARs in the UK," he said.

"Lots of consolidation is going on in the channel, and smaller VARs are being forced to invest in their businesses incrementally. TSG has realised this, and has picked up only successful resellers, which is why the strategy is working."

Duncan Wyeth, sales and marketing director at Sage reseller Serion Logic, said the market for accountancy software is big enough to absorb TSG.

"If TSG was creating new businesses it would eat into market share, but it seems to just be buying it up," he said.

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