Redsquid CEO talks momentous M&A growth and £40m goal

The MSP isn’t done acquiring in 2025 having already made four acquisitions this year

Redsquid CEO Sohin Raithatha says the MSP’s rapid expansion has set the stage for high ambitions before the close of 2025.

Founded in 2006, Redsquid is based in Hertfordshire and has a headcount of 110 spanning England and Scotland.

Reflecting on the past year, Raithatha describes 2024 as a period of exceptional growth and strategic consolidation.

“Last year our organic growth was bang on,” he tells CRN.

“We managed three acquisitions, one of which gave us a new vertical. That growth allowed us to double revenue and EBITDA in our 2025 financial year.

“On a pro forma basis, with the acquisitions we’re yet to do, we’ll be about £27m in revenue. We’re at about £22m at the moment.”

Looking ahead to what else the Microsoft, Giacom and Gamma partner can achieve before it closes out 2025, Raithatha names hitting £40m, leadership, and being number one in Scotland.

“The overall end of year objective, again on a pro forma basis, is to get to £40m, and having a platform that enables us to grow organically in a meaningful way via buy and build,” he reveals.

“We had 35 people last year,” he notes. “As our headcount has gone up nearly tenfold, making sure I have strong foundations with my leadership and exec team is really important.”

The B Corp MSP marked its third M&A deal in Scotland last month with the takeover of Glasgow’s RedMosquito, adding 20 new heads to grow Redsquid’s Scottish roster to 40 people.

The acquisitive services outfit now has offices in Glasgow, Fife and Aberdeen.

“We’ve achieved a lot of regional growth this year. We now have three offices in Scotland, so making sure we are the best MSP up there is also high on my list,” Raithatha adds.

Technology driving customer value

The CEO also points to technology trends, particularly Microsoft Copilot and security solutions, as key drivers of customer engagement and future growth.

“IT managed services, security, the Microsoft element, and we’ve seen quite an upsurge in Copilot licenses,” he says.

“Customers right now generally want a trusted advisor to show them they can still grow in this difficult environment. And that might come from software or tech that they’re not traditionally used to using.

“Security obviously isn’t going to go away. The evolution of AI is great, but is going to create more threats as well,” he warns.

Navigating costs and leadership challenges

Raithatha is candid about the challenges that come with growth, particularly in today’s cost-conscious environment.

The UK government introduced a national insurance hike in April, which left channel partners feeling the pinch.

“This year’s national insurance increase has been painful,” he says. “You now have to be creative in a lot of ways. For example, I need to recruit. But we’re not recruiting in the same ways as before.

“We’ve gone from a £6m business to where we are now, so navigating my own leadership style and making sure our new leaders are along with that journey is also top of mind.

“With the M&A, making sure we deliver on our organic growth also keeps me up at night.”

Delving further into how he is being creative with recruitment, Raithatha leans on AI.

He doesn’t view AI as a threat, but as a practical tool to drive efficiency and reduce recruitment pressure.

“Everyone talks about AI as a buzzword but having a look at what tools are there to help you so you don’t necessarily have to recruit for more roles,” he says.

“So, when someone leaves the business, take a step back and assess whether you do need to recruit for a replacement.”

The importance of integration

For Redsquid, the success of its growth strategy depends on effective integration and cross-selling through its expanding customer base.

“It’s really important that cross sell works,” Raithatha says. “It’s easier to do M&A than to integrate and then go to customers.

“We have to make sure we do the pre-acquisition work so we’ve got a great customer base where we can go in and talk about our technology at Redsquid to make those businesses that don’t want to recruit more efficient.”

More M&A before 2026

Redsquid’s M&A activity shows no sign of slowing, though Raithatha stresses that selectivity and cultural alignment are key.

“We’ve done four acquisitions so far and have two more to come before 2025 is out,” he reveals. “We want skills, capability.

“People don’t understand how many deals I turn down. It’s about aligning culture fit, capability, geographical reach, what value the company may add to our business. If it doesn't tick the boxes, then don’t go for it.”

Hopefully standing at nearly £30m by the start of 2026, Raithatha teases a glimpse into the scope of Redsquid’s acquisitions next year.

“You’ll see our deals getting larger. Will we do another ten deals next year? It depends on the opportunity.

“Our growth will continue in the same trajectory. I think there’ll be much more organic focus than there’s ever been from our internal sales team. From the M&A side it won’t go away.”