An ambitious US-based cloud MSP has made a significant investment in UK-based Dot Net Solutions as it looks to execute an aggressive cloud roll-up strategy across Europe.
New Signature, which last year secured $35m funding from Columbia Capital, has been investing heavily in M&A, snapping up five cloud players across North America and Canada with a focus on Azure, Office 365 and Dynamics CRM Online, and has now turned its attention to the UK.
Dan Scarfe (pictured), founder of Dot Net Solutions, said it has been a busy year for his firm, but this move will really have an impact on the global Microsoft channel.
“We secured private equity investment around two-and-a-half years ago and grew from 15 people to 70 and won Microsoft Partner of the Year last year. And now New Signature have invested in us, the deal went through last week, so we are now sister companies. It is going to shake up the Microsoft channel.”
The deal was for an undisclosed “very large” sum Scarfe said, but he added it is the first of many similar planned deals in the UK.
“They are looking to do a similar roll-up in the UK, and then move into Europe,” he explained. “The plan is to become the largest pure-play cloud services company in the UK and then globally. We are going to be a 300-strong organisation, and it will see us competing with the likes of Atos and Capgemini, where historically we have never got a look in.
“This is a great match for us in terms of how our companies operate – we both take customers on a journey to the cloud and provide managed services on the back of it.” He said there are currently no plans to change the Dot Net name “for the time being”, but at some point it will “make sense to consolidate the brands”.
The management team will also stay the same, with Paul Cosgrave as managing director, Scarfe as founder/CTO, and Neil Marley as sales and services director. Jeff Tench, chief executive of New Signature will now join the Dot Net board.
In a statement, Tench said: “Our North American and UK teams will partner to share best practices, innovation and expertise to deliver world-class services to our valued customers. We plan to keep the existing UK business structurally separate but unify under one mission and shared vision.
“Microsoft is clearly positioned to be a market leader in cloud computing and we are delighted with how Dot Net’s existing capabilities, team and overall mission fits with the New Signature strategy,” Tench added.
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