Solar Communications continues on acquisition hunt

Comms MSP made two acquisitions last year and is looking to make a further two in 2017

Comms provider Solar Communications is targeting a double acquisition this year after integrating the two businesses it snapped up in 2016, according to CEO John Whitty.

Solar Communications acquired Harlow-based Response Data Communications (RDC), which gave it Platinum ShoreTel status, and followed this up by acquiring Burnley-based Denwa in December, giving it gold Mitel accreditation.

These two acquisitions have now been integrated into the wider Solar business, with the RDC Harlow office remaining and Denwa's Burnley office shutting down.

With the two integrations complete, the firm now has its eye on future takeovers.

"We're actively looking for acquisitions," said Whitty. "We hope that we'll be able to deliver one or two this year, probably more of the same, in cloud unified communications.

"In order to get to the targets that we want, which the board have set out, we need to grow both organically and acquisitively; the acquisitions provide you with clear revenue benefits immediately but also the chance to cross-sell and up-sell.

"With the last two acquisitions we've managed to acquire the skills that would meet our goals, but we're always looking for additional value-enhancing products to add to the portfolio."

Whitty could not disclose the increase to Solar's revenue, with the company currently being audited, but said that the acquisitions - both bankrolled by Solar itself - had increased revenue "tremendously".

In its most recent full accounts on Companies House, Solar reported a revenue of £13.4m for the 12 months ending 31 December 2015, which was before the acquisitions of RDC and Denwa.

Building Mitel and ShoreTel business

With its new higher accreditations with Mitel and ShoreTel, Whitty said that Solar will be looking to transition its customers away from the Avaya solutions it previously promoted - explaining the reason as a mixture of uncertainty regarding Avaya's future and the strength of the two challengers.

Avaya filed for Chapter 11 bankruptcy protection earlier this year, but also launched its own cloud offering in the UK in February.

"It's a little bit of both," he said. "Obviously there's a little bit of concern in the [customer] base around the Chapter 11, but that said, it's still a very good product and it still works extremely well.

"Our relationships with ShoreTel and Mitel are extremely strong and we will be looking at our own Avaya base and other bases to see if we can offer them alternative systems, preferably in the cloud."