Local IT firm in acquisition move on 10th birthday
While the coronavirus pandemic has been catastrophic for most Borders businesses, a few have been able to seize opportunities from the chaos.
While face-to-face meetings are not allowed, companies have been relying on video communications more than ever before. It’s the new way of working.
That can only be achieved with a sound IT backbone, and one Newtown St Boswells business is reaping the awards.
SoConnect, the award-winning telecom, internet and IT managed services business – celebrating its 10th anniversary – has acquired Edinburgh-headquartered IT Centric, an IT and telecoms services business serving corporate clients in Edinburgh and across Central Scotland.
The acquisition, for an undisclosed sum, widens the Borders business’s client base and it will be able to connect more small businesses with its remote workforce during the pandemic and beyond.
IT Centric was founded in 2004 by managing director Gordon Sayers, who, along with David Ellis – previously a non-executive director at IT Centric and a former PricewaterhouseCoopers partner – will join SoConnect founder and CEO Campbell Fraser Campbell Fraser and Bob Bazley on SoConnect’s board.
Commenting on the IT Centric acquisition, Mr Fraser said: “The acquisition of ITC further increases the broad range of services SoConnect brings to our customers and enables customers to benefit from a seamless and integrated service for all their IT, internet and telecomms needs.
“This acquisition further strengthens our cloud, cybersecurity and hosted services, and we are now even better placed to support UK-wide SME’s remote workforces in the wake of Covid-19 and what will be the new ways of working.”
The acquisition adds around 80 SMEs to SoConnect’s customer base, which now totals more than 500 across the UK.
The combined group has a headcount of 38, supported by a nationwide network of more than 200 engineers, and is forecast to report revenue in excess of £5million in its next financial year (year to March 31, 2022).
In December 2019, SoConnect secured a bolt-on deal with Netopa, one of Edinburgh’s leading IT managed service providers, and Mr Fraser is not ruling out further growth by acquisition over the next 12 to 18 months.
He said: “Having successfully integrated Netopa in 2020, we look forward to another smooth integration over the next few months and are excited to welcome Gordon, David and the team.
“As with the Netopa acquisiton, we are in a position of real financial strength, with around 80 per cent of our contracted revenue being recurring and we have again self-funded the acquisition.”
Gordon Sayers, IT Centric’s founder, said: “I look forward to helping to drive the combined value of the business alongside Campbell and the leadership team at SoConnect.
“In common with Campbell, we share the vision around providing great value market-leading IT managed services, internet and communication services with best of class customer support.”