The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
The first six months of this year saw a stampede of M&A activity in the channel, including MCSA being acquired by Park Place Technologies and Insight's surprise purchase of rival PCM.
This breakneck pace continued into the latter half of 2019; August saw the peak of this activity with three of the 17 deals on our list announced in that month.
Here we count down 2019's most notable acquisitions among distributors, resellers and MSPs.
We judged the top 17 on a number of elements, including deal size (where disclosed), added revenues of more than £10m and the impact and profile of the deal in question. All deals involve UK firms or companies with operations here.
17. Misco brand acquired by UK Computer Group
The Misco brand made a surprise return to the UK channel on 1 July after UK Computer Group acquired the naming rights to the reseller.
The firm is becoming something of a resurrectionist of old favourites as it recently acquired the rights to household brand Comet, which became defunct in 2012.
Misco has been missing from the market since it went bust in 2017 but has been revived with a new website and offices under its new owners.
Rationale:
Russell Dickinson, head of marketing at UK Computer Group and an ex-Misco employee, said the aim is to revive the Misco of old.
Added scale:
The new Misco UK launched with a team of 10, with headcount expected to hit 30 by the end of the year.
The business will fall under the leadership of UK Computer Group CEO Gary Watson, but will operate independently of its subsidiary UK Computer Supplies (UKCS).
UKCS itself reported sales of £15m in 2017, according to files on Companies House, and says its 2018 revenue hit £23m.
What they said:
"There was a massive change in the Misco perception after 2012; we all know what happened, but we want to try to bring the old, pre-2012 Misco back," Dickinson told CRN.
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
16. Lima Networks acquired by Mavin Capital Partners
Manchester-based Lima Networks received a £12m investment from private equity (PE) firm Maven Capital Partners in October. The deal includes an equity raise for the PE house, which is a syndicate of institutional, family office and high net worth investors.
Lima counts Microsoft, VMware and Citrix among its vendor partners.
Rationale: Lisa Thornton, CEO at Lima, said at the time that the investment would allow the MSP to broaden its portfolio and become the "go-to cloud and managed service provider".
Added scale: In its most recently filed reports on Companies House, Lima reported a turnover of £12.7m in its year ending 31 December 2018. The cash injection will see Lima embark on a period of organic growth and strategic acquisition, as well as build on its cloud and managed services offerings, according to Thornton.
What they said: "We are extremely proud of our reputation which is thanks in no small part to a hard-working team, our unparalleled technical expertise and the refusal to compromise on quality customer service," said Thornton (pictured second left).
"Maven's investment solidifies our position as we now seek to broaden our portfolio and expand the business through a combination of organic growth and strategic acquisition, thereby underpinning our ambition to become the ‘go-to' cloud and managed service provider."
Ryan Bevington, investment director at Maven, added: "Lima Group is enabling its clients to gain a competitive advantage by designing and implementing IT solutions which match their organisational structure and business objectives.
"The market drivers for this type of specialist and highly technical service are overwhelmingly positive and Maven are excited to support the group's senior management team on the next phase of their growth journey."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
15. IntY acquired by ScanSource
Bristol-based VAD IntY counts Microsoft and Symantec among its partners and recently set up its first office in the US. It was acquired by US comms and point of sale distributor ScanSource for an undisclosed amount last week.
Rationale: ScanSource stated that the reasoning behind the purchase was to enhance its recurring revenue offering for partners..
It cited IntY's CASCADE - a cloud aggregation and distribution platform - as a means of taking the "friction out of acquiring, provisioning and managing as-a-service offerings".
Both disties count Microsoft, Symantec and Acronis among their partners.
Combined scale: US VAD ScanSource reported overall revenue of $3.8bn (£2.9bn) for its year ending 30 June 2018, with its European business contributing 11 per cent of that figure. It recently opened a distribution centre in Southampton to boost its US presence.
IntY saw turnover of £12.5m for its year ending 31 December 2018.
What they said: ScanSource CEO Mike Bauer (pictured left) praised the CASCADE platform and what the offering means for partners.
"CASCADE serves as the next piece in our continuing digital strategy and provides partners with critical capabilities, including software provisioning, data analytics, seat management, billing and support, so partners can sell more strategic cloud solutions and build strong recurring revenue practices," he said.
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
14. Plan-Net acquired by Acora
Acora's purchase of London-based peer Plan-Net in August kicked off a frenzied month of M&A. Both companies count Microsoft, Citrix and VMware among their vendor partners.
Rationale: David Rabson, CEO of Acora (pictured right), said at the time that the merger was "transformational" for both companies.
He added that Plan-Net "impressed" his team with its business model, service levels and how it complements Acora's own offerings.
Combined scale: Combined sales from the pair of companies is expected to be over £25m. Plan-Net reported total revenue of £10.6m for its year ending 31 December 2018, while West Sussex-based Acora reported turnover of £15.9m for its 12 months ending 31 October 2018.
The merger saw the expanded group's headcount grow to 300.
What they said: " Having worked alongside Acora previously, it was clear that the benefit for our customers and staff in bringing our offerings together provided an exciting opportunity for everyone," said Adrian Polley, technical services director at Plan-Net (now MD of Plan-Net), at the time.
"The combined proposition is incredibly strong, and we can see the merged group being dominant in the mid-market as we scale further and benefit from the growth opportunities."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
13. ECS Security spun out to form Adarma
ECS Group bid farewell to its security wing in June as an MBO saw it rebranded as Adarma.
The MBO was led by David Calder (pictured left) and Nathan Dornbrook, with Livingbridge PE firm providing support and debt from Bank of Scotland.
It counts Splunk, Symantec and Tenable among its vendor partners.
Rationale: Paul Thomson, CEO of ECS Group, said the decision to separate "makes sense" based on ECS Security's rapid growth and that it now allows both entities to focus on their "core areas of expertise".
Adarma MD Calder elaborated that the spin-out was driven by the company's ambition to become the UK market leader for FTSE250 companies across a range of industries.
Combined scale: Adarma has a headcount of 250 and revenue of £26.3m based on its year ending 31 December 2017 - its most recent accounts on Companies House.
What they said: "We believe there is an opportunity to partner with the team to build a business of real scale in the growing cybersecurity market," said Matt Caffrey, partner at Livingbridge.
"The team have built up a great business and we're excited to work with them as they grow."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
12. MCSA acquired by Park Place Technologies
Third-party maintenance (TPM) business Park Place snapped up Buckinghamshire-based VAR MCSA in one of the biggest channel acquisitions of the year, the details of which were not disclosed. MCSA has now been firmly folded into the Park Place brand.
Rationale: Park Place has been acquisitive throughout 2018, gobbling up a string of businesses in Ireland, the US, Singapore and Latin America.
The MCSA purchase was its first of 2019 and CEO Chris Adams (pictured right) claimed its latest addition now makes Park Place the largest TPM in Europe.
"We've always been a global company but we used to use partners to deliver internationally and our revenue outside the US was very small," he told CRN at the time of the acquisition.
"In 2015, we entered the [European] market in a more formal way in the UK.
"We have become the largest player in Europe in the last four years and with this acquisition our revenue jumps, on the maintenance side, to north of £50m, maybe close to £60m.
"When you include the other services through MCSA, we're probably over £70m but in terms of maintenance companies, I believe this makes us the largest in Europe now."
Added scale: MCSA reported sales of £39.4m for the year ending 31 March 2018 - a 25 per cent drop on the previous year, which it attributed to a shift away from low-margin business.
What they said: Chief exec Adams stressed that Park Place would continue to acquire in Europe and the UK in order to bolster its presence in the region.
"Relative to our continued acquisitions strategy, it is opportunistic," he explained. "If a company comes up, we evaluate it.
"We have to make sure we have the capacity; we don't want to strain our resources and our people, but we haven't had to walk away from much. The key there is whether it's a cultural and business fit."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
11. G3 Comms and Connected Managed Services acquired by Apiary Capital
PE house Apiary was established in 2017 to snap up businesses in the managed services space. Avaya partner G3 marked its maiden voyage into channel waters in March, and it quickly followed it up with the purchase of fellow Avaya partner Connect Managed Services in July.
The combined business is led by Connect boss Alex Tupman, with G3's James Arnold-Roberts taking up the group managing director role.
Rationale: London-based G3 was acquired to use it as a platform for further deals, which Apiary capitalised on with the purchase of Connect. The aim of combining the companies is to "build a platform of significant scale" in the managed comms space.
Combined scale: G3 reported turnover of £21.2m for its year ending 30 April 2019, while Connect saw sales hit nearly £30m for its 12 months ending 1 December 2018. Apiary claimed that combining the pair creates a £55m-revenue managed services player.
What they said: "We believe this is just the start of exciting and highly productive collaboration and it is fantastic to be working with experienced and like-minded people who are totally aligned with our goals and objectives," said Apiary Capital partner Nicki Boyd (pictured left).
Tupman added: "Our objective is to create a highly scalable and focused business that can support the needs of a far greater and more diverse customer base, located in the UK and abroad."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
10. Novosco acquired by Cancom
Belfast-based Microsoft Gold partner Novosco was bought by German giant Cancom in October.
Since then it has invested £500,000 in security operations centre to facilitate a £107m deal it won with Cambridge University Hospitals Trust last year.
Rationale: Cancom said the acquisition of Novosco would give it direct access to the Irish market for the first time, as well as strengthening its UK presence.
Added scale: The total "volume" of the deal is "approximately" £70m. Earlier this year, the Northern Irish MSP doubled its office size and employee numbers rose to 300 after winning the landmark NHS contract. That headcount joins Cancom's current staff of 3,500.
What they said: N ovosco's product portfolio extends our capabilities tremendously and the customers we serve complement each other perfectly," said Cancom SE CEO Thomas Volk (pictured).
"Virtually all Novosco customers have no business connection to us yet. In addition, the transaction gives us direct market access in Ireland for the first time, and around 300 specialist staff and a highly profitable business will join CANCOM."
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
9. Mirus IT acquired by IT Lab
The acquisition of HP Gold partner Mirus IT in August marked the third purchase for IT Lab in as many years, after snapping up Content and Code in 2018 as well as Perspective Risk two years ago.
Rationale: "The choice vis-à-vis Mirus itself was an easy one," IT Lab CEO Peter Sweetbaum told CRN at the time.
"It's a very successful business in the space and has been growing for several years. What they have built is a very high-quality business for its size. That's very important to us, as an organisation, and they also have a fantastic team.
Combined scale: Mirus IT reported revenue of £8.9m for its year ending 31 October 2018.
IT Lab ranks in CRN's Top VARs 2019 with revenue of £51.7m. At the time of the news, the London-based Microsoft partner said that the Mirus IT acquisition will elevate its turnover to £75m.
What they said: "In the M&A space people, frankly, have a choice," Sweetbaum (pictured right) said to CRN. "They either invest or they sell, but the investment route can be hard to go down.
"I think Paul Tomlinson (Mirus CEO), like the boss of many organisations of that scale, was faced with a choice. Do they continue to invest and grow, and really invest in what is a rampant need to train and develop people, or do they do something else?
"Paul looked around. He and I met and realised the two companies fit really well and decided to do that deal."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
8. Stone Group undergoes MBO backed by Souter Investments
PC builder and reseller Stone underwent a management buyout (MBO) - led by CEO Simon Harbridge (pictured below) - in December, backed by PE house Souter Investments.
The Staffordshire-based VAR had experience in the matter, having previously gone through an MBO supported by £28m from PE firm RJD Partners in 2008.
Rationale: RJD "now needs to close out" its fund and the new structure with Souter will allow Stone Group to develop its infrastructure solutions and services alongside its traditional hardware offerings.
Combined scale: Stone ranked 48 in CRN's Top VARs 2019 with revenues of £81.7m for its year ending 31 December 2018.
What they said: "Stone Group presents an exciting opportunity for Souter Investments to back an experienced and successful management team leading an established and significant technology business that is highly regarded in a fast-moving sector", said John Berthinussen, investment director at Souter, at the time.
"We look forward to working with Simon and his team as they continue to drive organic growth and expand the breadth of Stone Group's technology, service and support offerings, with the opportunity for both to be accelerated by M&A."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
7. Complete IT acquired by Sharp Business Systems UK (SBSUK)
High Wycombe-headquartered Complete IT was reeled in by the direct sales division of Japanese giant Sharp Electronics in early August.
It marked the second acquisition of a UK partner by Sharp in as many years after it reeled in reseller Midshire in 2017.
Rationale: Microsoft Gold partner Complete IT's suite of offerings was an attractive lure that would strengthen SBSUK's position in the UK, as well as supporting its own channel partners growth ambitions, SBSUK MD Stuart Sykes said at the time.
"This acquisition is a key strategic milestone for SBSUK," he said.
"Complete IT has a very similar customer-centric DNA to Sharp and we will continue to invest and focus on developing a service portfolio to accommodate the growing needs of current and future customers.
Complete IT retained its name and independence as part of the deal.
Combined scale: Complete IT reported revenues of £17.4m for its year ending 31 March 2019 and has offices in Swindon, Bristol, London and Peterborough.
SBSUK generated £96.7m for the 12 months ending 31 March 2018.
What they said: Colin Blumenthal, MD and co-founder of Complete IT, stated: We are keen to expand what we do as a business and this acquisition deepens our technical resources and expertise and allows us to further enhance our technology offerings and provides us with access to exciting new products and technologies which will now benefit an even wider audience of clients."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
6. SecureData acquired by Orange
SecureData was gobbled up by the French comms giant at the beginning of February for a reported £120m.
The Maidstone-based firm, which was previously owned by August Equity, claimed to be the UK's biggest independent cybersecurity provider and generated revenues of over £40m in its year ending 31 July 2018.
Rationale: Orange executive director Hugues Foulon (pictured below) said at the time that the purchase of SecureData was a "major milestone" in Orange's development in Europe's cybersecurity market.
"SecureData, just like Orange Cyberdefence, has successfully made the transition towards managed security services, and shares the same passion for cyber," stated Foulon.
"Cybersecurity has become a critical element for both large and small companies as they evolve in an increasingly digital-reliant world.
"We are convinced that the combined expertise of Orange Cyberdefence and SecureData will provide a powerful resource for our customers in ensuring the protection of their valuable data."
Added scale: Orange hit sales of €41bn (£36.6bn) in 2018 and has a global headcount of 150,000. SecureData generated revenues of over £40m in its year ending 31 July 2018 and boasts a headcount of 205.
What they said: August Equity's Mickey Patel said SecureData achieved an "exceptional exit" with an EBITDA multiple surpassing 20.
"The way we positioned the exit to focus on a trade sale was really important," he explained to CRN ahead of this year's MSP London conference.
"We didn't want to speak to private equity at all because we knew what we had. We focused on Orange and some other large businesses like that who could sell their existing businesses into [SecureData's] customers, so they had to give us a synergy multiple.
"We had a really good set of mid-market and large customers. These were 50-seat-plus across the UK blue chip [market], so if you want to try to get into those customers, you really need credibility.
"If you can sell them on [your] credibility on cyber, where people can end up paying a massive fine, you can sell them on other things."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
5. SBL acquired by Phil Doye
Kelway founder Phil Doye made a surprise return to the channel when he snapped up York-based SBL in May.
Doye acquired a 100 per cent stake in the Microsoft and Dell partner through his company Glebe Holdings Limited, after being approached by then-CEO and majority shareholder Dennis Hobban to bring it to the "next stage of growth".
Rationale: " SBL has been a mystery to a lot of people for many years. It's very York-centric and doesn't really talk about itself," Doye (pictured right) told CRN.
"No one really knew what it did. They just assumed it did a huge Microsoft number in the public sector and predominantly in defence."
SBL is a public sector specialist, sitting on a number of frameworks and recently on a large Ministry of Defense (MoD) contract, Doye added.
"I think because it's been under invested in for a number of years, there is an opportunity to almost bypass a lot of the investment that's been made over the last five years in resellers - which may or may not be the right investments - to create a much more modern business that addresses the customer experience in a different way," he stated.
"I feel like there's so much more new tech that can be applied to a business like ours. And I think because there hasn't been a huge investment over the last five to 10 years in the business, we're not limited by legacy. We can almost jump straight to the next level."
Added scale: SBL's most recently filed accounts for 31 August 2018 saw revenues drop 10 per cent to £139.3m, with Doye telling CRN that it is "crying out for some ambition and leadership". He predicted at the time it would be in the top 20 of CRN's Top VARs 2019. It ranked number 27 on the list, but Doye said it will see turnover of around £220m this year.
"The exciting bit is all the things that it hasn't done, rather than the things that it has done and, if you look at the size, it's already a top 20 VAR by size," he stated.
"With the recent MoD contract, in terms of revenue - and you can take or leave whether revenues are important - it will be well within the top 20 in the CRN list: somewhere around £220 million revenue for this year. There weren't many businesses the scale of SBL that were available for a price point that I felt was competitive."
What they said: " It's clearly very well established and respected in the markets that it serves and has been for a very, very long time," said Doye.
"However, it has some very under leveraged parts of the business. Its services businesses is sub-scale, and there's an opportunity to grow that. The customers have a high degree of trust in SBL and are very prepared to work with [us] to create some new solutions and services, so there's a really good opportunity to grow within the existing customer base."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
4. Stormfront acquired by Compu b
Apple premium reseller Stormfront was netted by Irish counterpart Compu b in December, creating the largest independent Apple provider in the UK and Ireland.
Compu b is Ireland's primary reseller of Apple products and is owned by parent company B. ICONIC.
Rationale: The deal will see Compu b grow its presence "significantly" in the UK, according to Ciaran McCormack, CEO of B.ICONIC.
Combined scale: Compu b will add Stormfront's 23 stores across the UK to its existing locations in Cork, Dublin, Galway, Limerick and a concession outlet in Selfridge's. The acquisition also brings the latter's 306 employees into the Compu b fold.
Stormfront reported turnover of £57.2m for the year ending 30 June 2018, while Compu b's sales for the 15 month period ending 31 March 2019 were £139.7m.
What they said: " This is a landmark acquisition for the B.ICONIC Group. The UK is an important market for our business, and this deal allows us to grow our presence significantly in this market," McCormack stated at the time.
"Stormfront complements our existing Apple Premium Reseller, business-to-business and education technology offering in the UK and Ireland, expanding our opportunities and supporting the delivery of our strategic growth plan for our business."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
3. SecureLink acquired by Orange (€515m/£433m)
The French telecoms giant followed up its SecureData purchase with the acquisition of Dutch cybersecurity player SecureLink for a massive €515m (£435m), which was completed in July.
Rationale: Snapping up SecureLink - and SecureData - now makes Orange the "go-to defense specialist" in Europe, it claimed at the time.
Orange was attracted to the Dutch firm's services in consulting, security maintenance and support form its SOCs and incident and incident detection and response capabilities. It's "strong presence" in Europe also makes Orange better able to cater to their customers at a local level, the French company added.
Combined scale: Orange claimed that the addition of both SecureLink and SecureData expanded its European cybersecurity business to 1,800 staff and €600m in pro-forma revenues.
SecureLink had generated turnover of €248m for its fiscal 2018 with a 660-strong headcount in 14 international offices - including the UK, Germany, Denmark and Norway - catering to 2,100 customers.
What they said: " Cybersecurity is a growing priority for companies of all sizes, and we believe the two most important success factors are Scale and Proximity," said Hugues Foulon, executive director of cybersecurity at Orange.
"Scale because today's threats are global, complex, and require matching protection capabilities. Proximity because in the global IT world, you want a trusted local partner to secure your most strategic assets.
"With the acquisition of SecureData and SecureLink, Orange has the highest scale to anticipate and fend off attacks, as well as local defense teams in all the main European markets, positioning the combined organisation as the go-to defense specialist."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
2. PCM acquired by Insight
The blockbuster deal of the first half of the year was undoubtedly global reseller Insight acquiring rival PCM for $580m (£440m). Only one other acquisition dwarfed it in size.
Rationale: The surprise purchase of PCM caught many in the channel off guard, especially considering the latter's recent M&A has been focused on services and skills capabilities as it shifts away from the traditional hardware reseller model.
PCM fits more into the traditional reseller space, deriving 75 per cent of its revenue from hardware sales, 15 per cent from software and 10 per cent from services.
Insight CEO Ken Lamneck opened up on the decision behind the move on a call with investors, explaining that PCM's customer base allows Insight to sell its previously-enterprise focused solutions to smaller customers.
Added scale: Combined sales form both companies are expected to hit $9bn annually, with PCM contributing $2.2bn to that figure.
What they said: "Strategically we have been very focused on how we build our mid-market play, from an accounting point of view, as we have been skewed towards the enterprise," Lamneck told investors after the announcement.
"That's an area that PCM brings a lot of value; about $1.6bn of its business is in mid-market and corporate clients.
"They will help us enable and grow our business, which is to take the engine we have built and extend that to a much broader base of clients, which is really important to us as we move into these solution areas."
Article continues on next page
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors
The 17 biggest channel acquisitions of 2019
From the return of the Misco name and channel veteran Phil Doye to Insight’s surprise takeover of rival PCM and Tech Data going private, we count down the 15 biggest M&A deals the channel saw this year
1.Tech Data acquired by Apollo Global Management (AGM)
October saw rumours emerge of a gargantuan $5bn bid by PE house AGM for broadliner Tech Data. These rumours were confirmed a month later when it was announced that the bid by the former Ingram Micro suitor had been approved and the distie had been acquired for $5.4bn.
During the "go-shop" period - a part of the deal which invites other parties propose a takeover - a latecomer submitted a more tempting offer, causing AGM to up their bid to $6bn, which was accepted by Tech Data's board of directors.
The deal is expected to close in the first half of the next calendar year.
Rationale: Tech Data said that the funds offered by AGM allows it the resources needed to bring to market the products and solutions it needs to ensure its growth.
Added scale: Data joins the likes of Rackspace in the technology division of AGM's wide-ranging portfolio, which covers other sectors including financial services, retail and natural resources.
What they said: " Over our 45-year history, Tech Data has grown to become one of the largest and most respected technology distributors in the world. This agreement reflects the significant progress we have made in our strategy of delivering higher value and positions us for continued growth and success," said Rich Hume (pictured left), chief executive officer at Tech Data.
"The transaction will enable us to build on our success, making Tech Data a growth platform and enabling us to further differentiate and expand our end-to-end solutions and provide our channel partners with unparalleled reach, efficiency and expertise."
You may also like
/news/4339738/group-westcoast-announce-merger
Distributor
ALSO Group and Westcoast announce merger
Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval
/news/4332287/channel-digest-dust-settles
Reseller
Channel Digest: As the dust settles
After a landslide win for Labour in the UK, in this week's Channel Digest we round up channel leaders' predictions for H2 and their assessment of Labour's commitments
/news/4329895/insight-acquires-world-tech-boost-digital-transformation-capabilities
Reseller
Insight acquires New World Tech to boost digital transformation capabilities
Solutions provider powerhouse hopes to enhance its expertise in driving digital transformation for clients across various sectors