Sage co-founder Graham Wylie has taken another step towards turning his North East England-based Technology Services Group (TSG), into a 'super' reseller with his second acquisition in three months.
Since October, Wylie has been on a mission to grow through acquisition and has now bought two accountancy software VARs for undisclosed sums.
Teeside-based CPA Systems joins Wylie's earlier acquisition of Newcastle-based Joynson and expands TSG's reach in the North East.
"We knew we would also require a presence on Teeside," Wylie said in a statement. "Local businesses require local service."
Nigel Hudson, group director, said TSG will initially concentrate on integrating its two acquisitions before considering geographical expansion.
"We are an acquiring company, but we also have to grow organically," he said. "There is no reason why we should not expand across the UK once we get it right in the North East."
Through the Joynson acquisition TSG gained an 800-strong customer base and partnerships with vendors such as Sage, Pegasus and Citrix.
CPA had over 1,500 customers and resold products from Microsoft, Hewlett-Packard and IBM, as well as Pegasus and Sage.
Hudson said the acquisitions would allow TSG to sell more than accountancy software, and stressed the importance of offering a wide product range to SMEs.
He added that his own and Wylie's experience at Sage will benefit TSG. "We have worked closely with resellers, so we have a feel of how reseller businesses are run," he said.
Duncan Wyeth, sales and marketing manager at Sage reseller Serion Logic, said the move was no surprise.
But he warned: "The fact that Wylie was the co-founder of Sage does not automatically mean he will make a good reseller. The business model for Sage partners has been small players offering local support."
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