Bytes vows to double Security Partnerships sales
Security VAR's new owner aims to grow revenue to more than £20m
Bytes Technology Group says its post-acquisition plans for Security Partnerships (SP) will result in the Check Point VAR doubling in size.
The Microsoft LAR acquired the £10m-revenue security player for an undisclosed sum last week, saying the deal would add weight to its services portfolio and open up cross-sale opportunities for both firms.
Speaking to ChannelWeb, Neil Murphy, group managing director of Bytes, said the firm was also keen for the security VAR to maintain its independence.
“We plan to keep SP as an autonomous subsidiary, with all the same staff,” he said. “Our ultimate aim is to double the size of the firm in terms of people, revenue and profits.”
It was also revealed that SP’s owner Darron Anley will stay on in a consultative capacity for 12 months, while its sales director John Gilbertson and technical director David Rawle will oversee the day-to-day running of the firm.
SP was subject to “quite a lot” of takeover interest before Bytes came along, revealed Gilbertson. “Over the past five years, the company has tripled in size,” he said. “The key for us was to find someone who would build on that success, rather than just rip off our customer data.”
The buyout follows integrator Sysec’s assertion in April that sub-£10m security VARs will need to either hit the acquisition trail or be bought to survive in the channel.
In light of this, Sysec managing director Cris Pikes said the deal is a smart move by SP, but fears its operations may not emerge unscathed.
“After the first year, they [Bytes] might find they have to undergo some rationalisation for the deal to make financial sense,” he said.
Ian Kilpatrick, chairman of security distributor Wick Hill, added: “Security VARs make good takeover targets because of the value-add their solutions can provide.”