The purchase consideration comprises both up-front and deferred components, the latter dependent on achievement of future profitability thresholds.
Security Partnerships provides secure IT solutions and related managed services to corporate and public sector organisations.
While Bytes already holds various accreditations with and is a significant partner to a number of global security vendors, this acquisition extends the current offering to include implementation and support services to customers. Bytes’ capabilities will now, through this acquisition, include data security, secure e-mail and Web communications, security risk and IT compliance solutions, end-point security, cloud security solutions and full implementation and support services.
“IT security remains high on our customers’ agenda,” says Neil Murphy, group MD, Bytes UK. “What particularly attracted us to Security Partnerships was their long-standing customer relationships and their emphasis on knowledge and customer service. It is a focused operation with a proven track record of profitable growth and a dynamic workforce. It drives most of its revenues through annuity contracts with some of the market’s leading security specialists.” Key management have agreed to long-term service agreements, thereby ensuring management continuity for the business.
Bytes is one of the UK’s largest and most successful Microsoft licensing partners, having earned the title of Microsoft Worldwide Licensing Delivery Partner of the Year in 2010. It is also the UK’s leading Xerox distributor.
This follows a record year for Bytes UK, where revenues continued to grow in the areas of infrastructure software, security, virtualisation, software asset management services and document solutions.
“This transaction is in line with our objective to grow organically and through acquisition,” says Bytes Technology Group CEO Rob Abraham.
“We are looking to replicate our successful South African business model in the UK, and thereby stimulate overall group growth. Despite recessionary market conditions, we are seeing excellent growth in the security space.”
“We will let Security Partnerships continue to run as a specialised unit, with appropriate support from Bytes in line with our federated business model,” adds Abraham.