‘The time was right for another owner’: Telent CEO on merger with M Group

Jo Gretton tells CRN the buyout will allow the VAR to expand its range of solutions in existing sectors

Telent Technology Services has been acquired by infrastructure services provider M Group to tackle the growing challenges of aging infrastructure.

M Group will aim to leverage Telent's capabilities in communications, network infrastructure, and end-to-end cybersecurity services ability to deliver enhanced solutions across telecoms, transport, water, and energy.

Based in Hertfordshire, M Group provides services in the fields of water, energy, rail and aviation, highways, and telecoms to private and public sector firms across the UK and Ireland.

The Hertfordshire service provider also expands its reach into adjacent markets, including the public sector, defence, emergency services and education.

Both companies will strengthen relationships with shared customers such as Transport for London (TfL), National Highways, Network Rail, Virgin Media O2, BT, EE and Openreach.

To better understand what this acquisition means for the future of the British VAR, CRN sat down with CEO Jo Gretton to talk about rebrand, financial evolution, and completion of the transaction.

Telent was owned by a consortium of shareholders, including US private equity firm JC Flowers and various individual, mostly current or former management, and corporate shareholders.

JC Flowers decided the time was right for another owner, with a longer-term interest in Telent’s sectors and skills, to take the business forward, Gretton says.

The merger will also, according to the CEO, boost Telent’s growth.

“Telent and M Group operate in similar sectors, and have often the same customers, but largely offer different services to these customers.

“Together [we will] be able to deliver integrated solutions across the telecom, transport, water, and energy sectors.”

Rather than expanding through new sectors, the acquisition will allow Telent to “expand the range of solutions in existing sectors,” Gretton tells CRN.

“That said, there are areas, such as water, where M Group’s strong position can lead to opportunities for Telent.

“These will be opportunities for Telent’s dedicated cybersecurity business, Cyro Cyber, to offer its services to M Group’s wide range of clients.”

She adds that the Telent brand will not be retired, as “it is well known among customers and in its markets generally,” but will be updated to become “Telent, part of M Group.”

The merger is subject to regulatory approval.

“Because of Telent’s role in delivering critical national infrastructure, it requires national security and investment clearance in both the UK and Ireland.

“We will work closely with the regulatory bodies to complete this process in a timely way.”

The merger follows a successful annual showing for Telent, which saw the reseller double its profits from operations.

EBITDA from operating activities went up nearly 50 per cent in March 2024 to £27.8m, compared to £14m the year prior.

This also follows acquisition of energy efficiency company Aran by M Group last week.