Syscap CEO says sale will benefit resellers

Philip White tells CRN that its acquisition by Wesleyan Group will provide capital boost to its 800 reseller customers

Syscap's chief executive has hailed its acquisition as "incredibly positive" for its reseller customers, saying it will improve the leasing provider's access to capital.

Surrey-based Syscap is regarded as the top independent provider of finance to the UK channel, working with about 800 IT resellers.

Chief executive Philip White admitted the ability of independent providers to access liquidity had been hit by the downturn, an issue he claimed its acquisition by mutual financial services outfit Wesleyan will eradicate overnight.

"The thing that has constrained us and other independents in the recent past is access to capital," White (pictured) told CRN.

"Working as part of a group with £6bn of assets under management that's looking to deploy capital is a great opportunity for the channel."

As a mutual, Wesleyan does not have shareholders and can therefore focus on the long-term needs of customers, something White said is consistent with Syscap's own objectives.

White insisted the acquisition would not alter Syscap's character.

"Our competitors are corporate entities that are often subsidiaries of banks or captives, like HP of Cisco," he said. "We are the largest independent. We are now part of a bigger group, but we are a subsidiary of the mutual, not the bank. This means we retain many of the benefits of the hybrid finance model but with the added benefit of certainty of funding."

Barrie Desmond, chief operating officer of VAD Exclusive Networks, which recently acquired French leasing house Fibail, said Syscap's acquisition is an indication that interest in IT finance is growing as the market shifts towards as-a-service models.

"Syscap is one of the last independents and offers a more personable service than the massive outfits that don't want to see anything less than £100,000 – I wish them all the best," Desmond said.

"This is the beginning of a trend: in the next few years, IT financing and leasing will become much more dominant."

John Pepper, managing director of Cisco partner Managed24/7, said: "After vendor finance programmes, Syscap have always been the next 'go-to' for IT leasing and asset finance across the channel. The depth and breadth that Wesleyan Group brings will no doubt bring its benefits.

"It will be interesting to see if it can now start competing head to head with vendor finance programmes."