razorblue CEO on M&A hopes and where the MSP wants ‘considerable’ growth in 2025

As organic growth slows, razorblue is turning back to M&A for scale, Dan Kitchen tells CRN

razorblue wants to achieve “considerable growth” in its security offering alongside an M&A play in 2025.

The 200 head MSP services the 50 to 1,000 user camp at the larger end of the SMB space.

After a “difficult” 2024 owing to a slower market, razorblue got to work re-engineering and relaunching its managed services products to include more functionality.

CEO Dan Kitchen tells CRN these efforts were “well received” by the MSP’s client base and new business prospects.

Now, razorblue wants to focus on bolstering other parts of the business to accomplish growth this year.

“We want to achieve considerable growth in our security proposition,” Kitchen states.

Following a string of high-profile cyberattacks on major companies like M&S, Harrods, Dior and Victoria's Secret, Kitchen says cybersecurity providers like razorblue are experiencing significant growth in that area.

This is why cybersecurity is firmly at the top of Kitchen’s priority list.

“Security is up there. Not only as a customer facing offering, but as a managed service provider, we know we are a high-risk target and making sure that we're looking after that, and that we've got a really well polished risk and compliance management framework,” he explains.

“We have dedicated people in those functions now and have done for the last couple of years. And so, building put that function and those capabilities, both internally and client facing.”

Kitchen adds that another priority for the group is building out other capabilities around apps, AI, data and M&A.

Acquisition drive

Following the opening of its Manchester office in Salford Quays last year, razorblue has set an ambitious target to double its Northwest operations.

This expansion includes further acquisitions and growing the team from 30 to 50 over the next 12-18 months, with a strong focus on recruiting local talent in IT support, cybersecurity, sales, and project management roles.

On the acquisition front, Kitchen wants a deal in the bag by the end of 2025.

“We would like to have done an acquisition by the end of this year,” he reveals.

“We’re in some early-stage discussions with some but we haven't got anything firmly moving forward with at this point.”

razorblue is no stranger to the M&A scene having completed three past acquisitions, the most recent being in 2021.

Kitchen explains this four-year hiatus boils down to the “off the scale” organic growth razorblue has been enjoying.

“It was up around 35 per cent each year from 2021 to 2024 and it just didn't make sense to also be doing M&A alongside.

“As that organic growth has slowed a little bit in line with the market, we've decided to go back out to market and get on with M&A again.”

And so, Kitchen and his team are on the lookout for other MSPs in the same sector.

“We’re not looking for anything complimentary. We're looking for something that’s core to what we do around Manchester, London and the North East.

“Because of our size and scale, we're about 200 heads at the minute. We're a full 24/7 operation, an internet service provider with our own national core network and our own UK sovereign cloud platform as well.

“So there's lots of opportunities for us to offer customers who we acquire as part of an acquisition, access to a much broader portfolio of services.

“It's not just about bolting revenue on for us; it's about being able to really add value to those customers.”