Data Integration sells up for £9m

Security VAR follows in footsteps of Integralis and Vistorm by joining forces with global firm

The ink is still drying on DI and Xchanging's £9m deal

Data Integration (DI) has become the latest independent security VAR to sell up to a global firm.

The Basingstoke-based reseller has agreed a deal worth up to £9m with London-based business processing firm Xchanging, which has 8,000 staff globally.

The move follows in the footsteps of Integralis’ acquisition by Japanese telco NTT last summer and Vistorm’s 2008 takeover by EDS.

DI was among the best-known remaining independent UK security VARs, with revenue of £14.5m for the year to 31 March and 56 staff. Its key vendor partners include Juniper, Aruba, Palo Alto and Blue Coat.

Xchanging said the deal would bolster its capability in network managed services and establish a reseller platform, adding that DI had been its preferred network partner for the past two years.

The acquisition will be paid in cash over two years, comprising a guaranteed payment of £6.5m and an earn-out of up to £2.5m based on operating profit targets.

Xchanging chief executive David Andrews said: “We see an exciting future for us together as BPO services are increasingly delivered through cloud computing-based technologies.

“Xchanging and DI have already created this electronic managed service for claims handling with the London insurance market – a leading example of the power of new-generation technologies in business processing.”