Intellect Security gobbled up by new investment vehicle
Metaphor IT reveals its intention to carry on acquiring channel firms
Newly created channel investment vehicle Metaphor IT has announced its first acquisition, snapping up security VAR Intellect Security.
Metaphor IT was founded by Stuart Grist and Richard Callis, who were sales director and professional services director respectively at virtualisation player Intercept IT, before it was sold to Alternative Networks in January 2014. The pair then oversaw the integration of Intercept IT into Alternative Networks, after the major shareholders departed following the deal.
Grist and Callis then formed the investment vehicle Metaphor IT in May 2015, once Intercept IT was fully subsumed into Alternative Networks.
"The idea of Metaphor IT is to grow and acquire specialist managed services providers. Intellect Security is the first of those, and we will go on and make further acquisitions in order to grow, but we still want to remain specialist," Callis told CRN.
Founded in 2002, Intellect Security partners with Symantec and Centrify, and delivers security solutions and services to customers including a number of magic circle law firms. The firm created its own encryption platform Cryptosoft in 2013, which was spun out last year as an independent company.
Intellect Security's former managing director, Jon Penney, previously indicated to CRN he was looking for an exit strategy by 2016. He has now departed Intellect Security and is CTO at Cryptosoft.
Callis, who has become Intellect Security's new managing director, said he was attracted to the firm because of its "loyal client base", and its ability to deliver recurring revenue with those clients over a number of years.
He also said he sees a chance to expand the reseller's offering into new security areas.
"For us the opportunity is we can grow the portfolio. Initially it was in data security and integrity, that's their history. But we are looking to go into identity management and threat protection. We will go out to our clients and offer those three things, along with a great pedigree in securing the cloud," he said.
Following the deal, for an undisclosed amount, Intellect Security will keep its brand and its offices in Henley.
The Intellect Security management team, including Penney, has now departed and been replaced by the board of Metaphor IT, which comprises Callis, who is the new managing director; Grist, the new sales director; and channel veteran Paul Edgeley, who joins as non-executive chairman.
Edgeley, who was managing director of Lynx Technology before it was sold to BT in 2007, is currently negotiating a stake in Metaphor IT.
"I felt these guys had a good model, and good growth potential. My role will be to ensure the board and strategy is in line with what we can achieve. We will be making acquisitions, but we will be ensuring that our traditional business, and the team we have around them, is fit for purpose. Then we will hopefully be looking to make acquisitions in the future," he said.
The deal for Intellect Security, which was completed on 1 July, was funded by Grist and Callis personally, but the pair are not shareholders at Intercept IT.
The board of Metaphor IT will now operate out of Intellect Security's offices in Henley until the next acquisition is made, which Edgeley said could be within the next 18 months.