Luxtech prepares for string of acquisitions
Bullish reseller feeling upbeat about acquisition strategy in 2006
Reseller Luxtech is on the acquisition trail with five firms as potential purchases expected during the coming year.
The firm acquired telecoms reseller CSS last September and now plans to acquire channel players that can drive its convergence business.
Luxtech resells Swyx, Avaya, BT and Microsoft and revealed acquisitions will be funded internally and through additional bank funds.
Russell Lux, managing director at Luxtech, said: “We have big acquisitions plans in 2006, hopefully with a couple this month. Within the next two to three years we hope to become a £10m business.”
London-based Luxtech plans to acquire in the Home Counties and City areas, and incorporate the businesses into its headquarters.
“We are looking at a range of VARs from traditional IT resellers, the PBX resellers and the broadband resellers. We want to expand in convergence and have been doing this since the CSS acquisition,” he said.
Lux added that Luxtech has a 16 strong workforce which will rise to 20 by the end of the month and all staff from the acquisitions will be relocated to its London office. The five potential targets will consist of firms with eight to 15 employees.
Andy Bills, senior vice-president for sales in the UK and northern region at vendor Swyx, welcomed Luxtech’s acquisition proposals.
“This is good for us and we have looked to focus on resellers with a strong growth strategy.”
Bills said the telecoms market will continue to consolidate in 2006.
“I expect the acquisition trail to intensify in 2006 as people are seeing technology developments that cannot be serviced just through organic growth.” he said.