Bytes UK, a wholly-owned subsidiary of South African JSE-listed technology company Altron, has acquired UK-based IT reseller Phoenix Software.
The end-to-end IT solutions provider, which was started 27 years ago, derives more than 80% of its business from the public sector, with a turnover of more than £130 million.
Bytes UK has traditionally served the corporate sector. The combined entity will have revenue of £400 million and about 480 employees.
Altron Group CEO Mteto Nyati says: "The acquisition will bolster Bytes UK's presence in the value-added reseller segment, particularly with respect to adding additional Microsoft capabilities to the group, which will in turn make us a significant UK partner to Microsoft.
"The acquisition also increases our international footprint, one of our key drivers for future growth as we seek to position Altron as a global ICT company through acquisitions and partnerships with other businesses in selected foreign markets."
Neil Murphy, Bytes UK Group MD, says: "The acquisition brings together two 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.
"This acquisition is timely given Brexit and a consequently complex process that will doubtless demand an increase in government spend on IT," says Murphy.
As part of the deal, key employees will enter into two-year service contracts. No job losses are foreseen in the immediate future.
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