JSE-listed information and communication technology (ICT) company Altron, through its subsidiary Bytes UK, has acquired information technology (IT) reseller and solutions provider Phoenix Software.
The acquisition has bolstered its presence in the UK value-added reseller market segment and increased its international footprint, Altron Group CE Mteto Nyati said in a statement on Friday.
“One of our key drivers for future growth is to position Altron as a global ICT company through acquisitions and partnerships in selected foreign markets.”
The acquisition enabled Bytes UK to grow its footprint nationally and immediately have access to an additional 3 000 customers and new IT vendors. This allows the group to cross-sell current offerings into a new base, while offering Phoenix’s end-to-end solutions to current customers, added Nyati.
The combined UK entity would have revenues of £400-million and about 480 employees, enabling it to become an important partner to many of the major global IT vendors, and to work with clients across all sectors.
Phoenix Software is an end-to-end IT solutions provider with a 27-year history. Phoenix is one of the largest and most established UK IT resellers and derives more than 80% of its business from the public sector, while Bytes UK has traditionally served the corporate sector.
The York-headquartered company has a turnover of more than £130-million and 165 employees providing end-to-end IT solutions including software licensing, software asset management and services.
Bytes UK Group MD Neil Murphy explained that the acquisition added scale and new capabilities to Bytes UK’s operations.
The deal also expands Bytes UK’s offerings across the UK, as it had mainly conducted business in the southern parts of the country over its 35-year history, while Phoenix’s focus has tended to be in the northern parts.
“The acquisition brings together companies with different qualities and strengths to benefit our combined customer base. The combination process will not interrupt the day-to-day running of the company.
“Further, this acquisition is timely given Brexit and a consequently complex process that will doubtless demand an increase in government spend on IT,” he said.
As part of the deal, which came about after Phoenix’s owners indicated they wished to retire, key employees will enter into two-year service contracts. No job losses are foreseen in the immediate future.
“The acquisition comes at the right time for our company and employees given the fast-changing world of IT and the channel consolidation currently under way. We identified considerable synergies and are excited about working with new complementary offerings and moving forward with ambitious growth plans across all our vertical sectors,” commented Phoenix Software MD Samantha Mudd.