Annodata resumes M&A spree

VAR says acquisition of print specialist STS will push its revenues past £80m and that more acquisitions will follow

VAR Annodata has announced its first acquisition of 2015, snapping up STS to boost its print capabilities.

The purchase of the Wetherby-based firm, for an undisclosed amount, is designed to fill a hole in Annodata's offering by handing it capabilities in wide-format specialised printing.

Annodata claims that once STS, which has revenues of about £3m per year, merges into Annodata, it will push its revenues above the £80m mark, bumping it closer to its 2016 revenue goal of £100m.

Annodata, which specialises in communications, managed print and data services, acquired IT infrastructure provider Keltec in November and strongly hinted it was looking for more acquisitions in 2015.

Martin St Quinton, Annodata's chairman, said: "STS has an impressive portfolio of long-standing customers including national and local newspaper groups and, much like Annodata, is particularly strong in the housing association market. Vendor-agnostic and with a strong, profitable business model, STS is a great fit for Annodata."

St. Quinton, who previously led numerous acquisitions at Azzurri, said there will be more acquisitions in 2015.

"Over the next 12 months we will look to make further strategic acquisitions, like the Keltec deal last year, to expand our product portfolio and tuck-in acquisitions like STS which consolidate our position as a leading provider of print, communication and technology services to the private and public sectors."

Founded in 1997, STS has clients which include William Hill, the Manchester Evening News and the Yorkshire Post.

The deal, which was funded by Annodata's existing cash reserves, will see the two companies fully integrate, with staff at Annodata's Leeds office set to move to STS's offices in Wetherby.

Annodata claims that STS's employees will remain in situ, and its existing managing director, Peter Langstaff, will continue at the newly created firm.

Langstaff said: "Becoming part of the Annodata Group is good news for our staff and, importantly, for our customers, who will benefit from the additional resources and capabilities that a company of Annodata's size and breadth can offer.

"Annodata has a long history of making acquisitions, so I have every confidence that the integration of STS will be smooth and I look forward to working closely with the team to move the business forward."

Earlier this month, Annodata announced its operating profits were at a record high.