Exclusive: CSI makes a play for APSU
Mid-market MSP doubles the size of its annuity business as it acquires cloud services specialist for undisclosed sum
Ambitious managed services provider CSI has acquired APSU in a move it claims will double the size of its annuity business.
The firm has taken over the UK side of the business, but the US subsidiary will be divested and the current shareholders will continue with that side of the business, CRN understands.
Alan Watkins, executive chairman of CSI (pictured), told CRN his firm now boasts three quarters of its business as recurring revenue.
"We are buying 100 per cent of APSU and that is going to double our size and also press our focus home big-time," Watkins said.
"There has been a massive transition from people buying boxes in favour of a managed service offering and anybody who claims not to have seen that is lying. We have been in this sector for the last two years and this acquisition sets us up perfectly for 2017," he said.
Watkins said all customers will be transitioned over to CSI, and the APSU name will ‘disappear fairly quickly' in the UK, but will continue in the US. APSU was established in 2011 following a merger between IBM partners Apex Computers International and AssurIT.
"With CSI in the UK and APSU in the US we are in a strong position and will continue to share IP and resources," Watkins explained.
Some of the existing APSU management team will transfer to the US, and Steve Morris, CEO of APSU will become a CSI shareholder.
"We [CSI Group] have gone through a lot of change in the last few years, and now have a very strong management team that I am delighted with," Watkins said.
APSU's Morris said the business split of APSU Inc would give them more focus on growing its IBM business in the US.
"Since the merger of APEX and AssurIT in 2011, we've made great strides in building our UK business, and I'm confident that under CSI's leadership this will continue into the future. Separating our emerging US business will allow us to accelerate our presence in the US and serve our emerging customers better," he said.