TSG says its acquisition of fallen competitor Aegis IT will bolster its ambitions to crack the 'M' of the SME market.
The Newcastle-based VAR grabbed Aegis' assets and trade from administrator Begbies Traynor earlier this month in a pre-pack deal.
Owned by Sage founder Graham Wylie, TSG rapidly grew to become one of the UK's top suppliers of IT to small businesses through a series of quick-fire acquisitions between 2003 and 2005. Acquisitions since then have been fewer and further between. It currently has 400 staff.
Talking to CRN, TSG chief operating officer Steve Cox said Aegis' base of mid-market customers, which include Turner Broadcasting and G4S, were the prime motivation behind the deal.
"We are moving more into 'M' of SME as we see a big opportunity for us as a business there," Cox (pictured) said.
It is TSG's first acquisition for several years, Cox added.
"We took a breath and did a consolidation exercise," he explained. "Early on, we were looking at gaining critical mass from a geographic and product perspective. Now we have got UK coverage, it's more about making acquisitions of complementary skill sets."
Although it was a pre-pack deal, other local resellers were "in the mix" to buy Aegis, Cox indicated. He said the firm had encountered challenges as a small firm serving large clients.
Expanding in London is also on HP and Sophos partner TSG's radar this year, Cox confirmed.
"We've got clients in London but have never targeted the market before. We want to make more of a move there this year," he said.
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