Core Technology Systems CEO on plans for CompanyNet acquisition

Conor Callanan says there are plans to drive CompanyNet to bigger organic growth

Core Technology Systems plans to drive CompanyNet towards the same growth rates as its new parent after acquiring the Microsoft Gold Partner last month.

That is according to Core's CEO Conor Callanan, who told CRN that Core purchased the Scotland-based business in order to grow it further, adding that the culture of the organisations are very aligned.

While there will be no operational integration until later in 2023, areas such as sales, marketing and admin will be integrated throughout the year where it is advantageous to do so, Callanan said.

"We didn't acquire CompanyNet to make any savings, we bought it for growth," Callanan said.

"Our organic growth this year is 30 per cent, so our goal is to turn CompanyNet into a 30 per cent growth vehicle as well."

Founded in 1996, Microsoft Gold partner CompanyNet delivers and supports Microsoft 365 and Azure solutions for organisations across the country.

The firm also offers professional services and modern workplace solutions to customers in commercial sectors including financial services, food and beverage, legal, and the public sector, including the NHS.

London-based Core says acquiring the business will allow for greater capability and additional resources.

Callanan highlighted CompanyNet have broad skills around Microsoft power apps and other tools in the Microsoft power platform, as well as having advanced skills in the compliance area of Office 365.

He said: "They have more advanced skills in some of those areas than we have, and they also have some IP in those areas that we're able to leverage.

"What we bring to the party for them is the ability to turn that into monthly recurring revenue. One of our strengths is driving monthly recurring revenue."

"We are also bringing to them the ability to do scalable end user device management."

The deal also provides Core geographic expansion into Scotland, adding 25 employees and offices in Edinburgh and Glasgow to the business.

"The local presence and local knowledge is very helpful in doing business in the Scottish market," he said.