Dorking-based VAR Shift F7 has kicked off its ambitious acquisition strategy with the purchase of Surbiton-based Datashare Solutions Ltd (DSL).
This latest addition, for an undisclosed sum, will sit under the newly created Shift F7 Group as the firm begins its strategic plan to acquire non-competing IT businesses.
Both firms operate in the mid-market sector without a crossover of clients or employee roles, so are a perfect fit, the company said.
Shift F7 claimed that its historical storage, infrastructure and licensing delivery to mid-market customers will be boosted by DSL's managed services, in-house datacentre and disaster recovery capabilities. In turn, DSL will benefit from the scale of Shift F7's business.
Garry King, managing director of Shift F7, said: "We have historically outsourced some of the services Datashare offers its clients, so naturally acquiring a company along with its employees and clients is a better way to grow in this economic environment. It is an exciting time for us and we are looking forward to integrating the two businesses and targeting growth in 2012.”
DSL will keep its name, but will be labelled as part of the Shift F7 Group, and the two firms will work on integrating their respective websites, King said.
King added that the firm is on the hunt for future acquisition targets with a recurring revenue model.
"Our next acquisition would be a strategic buy again," he said. "We are looking at more telephony/VoIP-based firms, or cloud specialists, with a recurring revenue model. Aspirationally we are looking to double in size over the next two years."
John Eady, who will remain as managing director of DSL, added: “The directors of DSL have recognised that to effectively compete for major corporate business and the subsequent ongoing supply of services, it is necessary to have a certain critical mass. This deal gives us a bigger voice and will broaden the range of services available to our and Shift F7’s customer base.
“What we want to achieve from this acquisition is the ability to walk into a new sales opportunity in a stronger position than we were before. If we achieve this as a result of this deal, it will be better for everybody. We believe the greatest beneficiary will be the customer, who will benefit from the combined strength of Shift F7 and DSL.”
Infrastructure provider says international sales now make up 51 per cent of its revenue
Suzanne Chappell of TMS plans sailing venture after selling Oxfordshire-based TMS to acquisitive Chess
Withdrawal of credit insurance by some providers a 'reflection' of current challenge facing IT sector, according to MD Steve Soper
SMART's UK managing director joins Lenovo to boost SMB business