Chess makes move on UWT
Acquisition hungry VAR adds to rapidly growing business
VAR Chess has made its 12th acquisition in two years after buying specialist voice reseller United Worldwide Telecom (UWT).
Acquisition-hungry Chess will offer UWT’s customer base, which currently subscribes to voice-only services,a wider range of products.
Speaking exclusively to CRN, David Pollock, chief executive of Chess, said: “We have a strong pipeline of acquisitions. We are hoping
to make another purchase in a couple of months and take our total to six this year.
“The market continues to consolidate and there are a number of smaller VARs under pressure: UWT was looking to exit the market. It is local and has a number of customers and partners that fit Chess.”
Peter Rowell, chairman at mergers and acquisitions specialist Regent Associates, said: “In the telecoms space there is ongoing consolidation. Resellers need to be different or have scale to succeed.”
Rowell added that many telecoms VARs have seen “the writing on the wall,” and they need to decide whether they are going to acquire or be acquired.
Rajesh Sinha, technical director at telecoms provider Bailey Teswaine, said: “Chess has set out to make an acquisition every two to three months. This is standard behaviour for telecoms firms that are looking to plug gaps through acquisitions.” C