Teksys takes first step with First Stop
Corporate VAR acquires ailing reseller and plans more purchases
Corporate VAR Teksys has carried the consolidation torch into 2004 by acquiring struggling VAR First Stop Computer Group.
First Stop, which was set up in 1986 and reported a £12m turnover in its past financial year, went into administrative receivership at the end of 2003.
"We have been in discussions with First Stop for 18 months and have bought it out of administration," said Teksys chairman Shaun Frohlich.
"The firm has a long history, strong service-related accounts and a sizeable customer base, along with a good sales and technical team.
"This gives us a chance to push our Microsoft high-end services, along with our software and licensing business, to new customers."
The acquisition will also allow Teksys to generate extra revenue from existing customers by offering First Stop's skills in storage, training and services, he added.
Frohlich confirmed that Teksys is still on the acquisition path. "This is the first step in our plan to grow through acquisition rather than organically," he said.
Eventually the two firms will be integrated under the Teksys brand, but Frohlich said this will take time. "In the medium term we want one company, one computer system, one name," he said.
Nitin Joshi, partner at accountancy and insolvency firm PKF, which represents First Stop's creditors, said: "Anything that can result in the salvage of employees is a good thing, but unfortunately there will be no return for the creditors.
"This is yet another [financial] loss for distribution and perhaps an indication of the way this year is going to turn out."