Managed service provider (MSP) Xpand IT has bought a majority stake in KwaZulu-Natal (KZN)-based MSP Rapid IT for an undisclosed amount.
Xpand IT was founded in 2007 by Brett Scott and Steven Preston. Scott remains as managing director. Rapid IT was founded by Clinton Coetsee in 2000.
Scott tells ITWeb via e-mail that Xpand IT has snapped up a 55% stake in the KZN-based MSP, as it looks to expand operations in the province.
He notes that Xpand IT has a national footprint, with offices in Johannesburg, Cape Town, Durban and George. “We acquired shares in Rapid IT to strengthen our KwaZulu-Natal growth, presence and offering.”
In November last year, Xpand IT acquired Premier IT Solutions, an IT support firm located in the East Rand, also for an undisclosed amount.
Scott adds that Xpand IT is actively building a national group of specialist IT companies with a presence in all nine provinces.
“Both businesses are managed service providers that assist their customers with proactive IT support, Microsoft 365 solutions, connectivity, telephony and cyber security solutions.”
He reveals that after the merger, the business will have a total of 43 employees.
“Both companies share the same values, and Xpand IT will provide technical support to Rapid IT through its strong technical workforce. We anticipate a slow and stable transition, understanding that change can be challenging for both clients and employees. Fortunately, our track record in managing such transitions has been on point so far.
“Although we have been operating in KZN for many years, it is a market that demands a strong local presence to gain momentum. Clinton Coetsee, managing director of Rapid IT, has an incredible reputation in the region. He is highly-respected, and our values and business ethics are perfectly aligned, which is critical for a successful partnership.
“Rapid IT will leverage our technical workforce to serve clients better and attract new ones. Our commercial team will introduce robust solutions, including our security offerings and other services designed to reduce operational costs and improve efficiencies.”
Through this partnership, Rapid IT will gain access to Xpand IT’s resources, technology and expertise, enhancing Rapid IT's service offerings.
Scott adds: “By streamlining financial systems, we will alleviate Rapid IT’s operational burden. Access to Xpand IT’s resources, capital and supplier relationships will directly benefit our clients, ensuring they receive the best value for their investments.”
“This partnership stems from a strong relationship, built on years of collaboration, discussions and planning. Access to Xpand IT’s resources will enable us to respond to clients more swiftly and scale our business without technical limitations.” Coetsee says.
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