Security reseller Entec has acquired rival Red Network Solutions for an undisclosed sum.
Red Networks was set up in late 2001 by the original founders of Entec to go in direct competition with the reseller.
Andi Robinson, managing director of Entec, said that when its staff left to form Red Networks, Entec was in "dire straits", with only two members of staff.
"The company floundered for about seven months, but we are stronger now and looking to build in readiness for a pick-up in IT spend. We expect security will lead this," he said.
Ian Kilpatrick, group managing director of security distributor Wick Hill, agreed that when recovery comes it will be led by security. "It is difficult to say when recovery will come. Everything else is in the doldrums," he said.
David Ellis, director of e-security at Unipalm, was more positive. "The whole managed services market seems to be picking up, driven by increased use of broadband," he said.
Robinson said Entec is also on the look-out for other acquisitions. Entec had been in talks with Addictivity before the VAR entered the process of liquidation last week.
"We were well on the way to buying Addictivity but are no longer looking at it," he said.
Businesses also admit to holding data without permission of subjects
Zedsphere says end-point security vendor's offerings will be a 'key' feature of its wider portfolio
New acquisition will bring UK cloud service provider's global headcount to over 700
Law firm claims that Oracle lied to investors over what is driving its cloud revenue growth and boosted sales through 'threats and extortive tactics'