Chess makes moves in acquisition game
Utilities and communications provider makes sixth buy in eight months
Utilities and communications provider Chess has made its sixth acquisition in eight months, and has revealed there are "more in the pipeline".
Last month the firm took over Leicester-based telecoms provider OCIS Lite for an undisclosed amount, swallowing up a customer base of more than 400 and revenue of about £3m a year.
David Pollock, chief executive of Chess, said the market is ripe for acquisition and claimed the channel will benefit as a result.
"Acquisition is our core strategy. There is currently a lot of consolidation in the marketplace. Since deregulation, firms can save up to 15 per cent on phone lines. At the moment few resellers can offer that service, but we will be working with our channel partners to change that," said Pollock.
He added that the acquisition had happened suddenly, as OCIS's carrier "pulled the plug", leaving customers without a service.
"We managed to restore the service within 48 hours, but it has been a madhouse here," he said.
In August Chess bought the customer list of entrepreneur.com, with other acquisitions this year including deals with Eclipse Mobile and Eurocall Mobile.
Pollock added that the firm will be looking to expand its channel in the coming year to maximise opportunities in the market. It is currently working with O2 to cater for Research In Motion's BlackBerry device.
Keith Humphreys, managing consultant at analyst EuroLAN, agreed that the acquisition bodes well for the channel.
"It is often stated that resellers would like to partner with a service provider [SP] but BT may not be the SP of choice. This opens up an opportunity for Chess, especially as the SME markets have been largely under-served in this respect," he said.