Outsourcers target security VARs
DI's new owner claims security channel is ripe for further consolidation
Paddy Byrne: Security and networking are a natural part of what most major technology outsourcers are going to want
The firm that acquired Data Integration (DI) last week has predicted that more security and networking VARs will be bought by global outsourcing firms.
London-listed business processing giant Xchanging grabbed Basingstoke-based DI for up to £9m in cash, building on a long partnership between the two firms.
This mirrors the recent purchases of security VARs Integralis and Vistorm by service goliaths NTT and EDS, respectively, as well as the recent VAR acquisition spree of Capita.
Paddy Byrne, executive director of the UK region at Xchanging, said that DI would improve its proposition for clients such as the London Metal Exchange. “At the heart of Xchanging is our ability to connect with customers. We do not have a reseller platform and we need additional secure networking and cloud skills,” he said.
“Security and networking are a natural part of what most major technology outsourcers are going to want. Clearly there will be a lot of activity in this space,” he added.
The DI brand will be transitioned over time, according to Byrne. The deal includes a £2.5m earn-out clause, and he indicated that management are likely to stay on.
“We have no intention of diminishing the purchase.”
Jonathan Lassman, managing director of NTS, said: “Another one of our competitors has been bought by one of the big boys. Vistorm, Integralis and Netstore are all after the 10,000-plus-user deals and DI will be too.”