TSG makes Logical next expansion step

VAR acquires 10th firm in 14 months

VAR Technology Services Group (TSG) has acquired its 10th firm in 14 months, Logical Solutions, as part of its plan to develop bases across the UK.

TSG told CRN that the reseller will be fully integrated into the company, with all of its 17 staff relocating to TSG's Leeds offices. The price was undisclosed.

"Logical will retain its focus on accounting software and infrastructure. But it will become the Sage arm of our business, bolstering our Yorkshire Sage focus," said Nigel Hudson, business development director at TSG.

TSG, which was set up by Sage co-founder Graham Wylie, focuses on financial software. Its vendors include Sage and Pegasus. Last year it bought eight resellers.

Hudson said TSG has no intentions to shift its focus away from the SME sector. "Customers with between 11 and 250 employees are our sweet spot. We are also looking to grow our profile in each UK region, organically and via acquisitions," he said.

Gary Turner, managing director of Pegasus Software, said: "This is an interesting strategy. From a commercial and services point of view, the way it is operating is very interesting.

"TSG is focusing on professional service delivery and each buy improves its performance. Rival VARs should be wary."

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TSG'S ACQUISITIONS

Oct 2003: Newcastle-based Joynson, a networking reseller.

Jan 2004: CPA Systems, a Teesside-based Sage software reseller.

March 2004: Orlando IT, a reseller of Microsoft and Sage software.

May 2004: ISI Systems, a reseller.

July 2004: Clydeforth Digital Solutions, a hardware and support reseller.

Aug 2004: Baron Corporate Systems, a reseller of Pegasus, Sage and SAP software.

Nov 2004: Forty One.

Dec 2004: System Advantage.

Dec 2004: Esco.

Jan 2005: Logical Solutions.