Integrator 2e2 has today finalised the acquisition of security and managed services provider Netstore for £57m.
The completion of the deal, tabled in the summer, will add around £50m to 2e2's top line, an additional 200 staff and application hosting services including two tier-three data centres based in Reading the North East, bolstering the software-as-a-service drive.
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"Our perfectly positioned SaaS, consulting and managed service offerings allow 2e2 to deliver greater business efficiencies and cost savings to an expanded customer base," said Terry Burt, CEO of the 2e2 Group.
The acquisition is the fifteenth 2e2 has made since it launched in the UK during 2002 and will add "further momentum to 2e2 as a major force in the UK market," Burt added.
This should be the last acquisition the integrator makes this year - and is it's largest to date - as the buy and build strategy has slowed to one conquest a year more recently.
By absorbing Nestore, 2e2's will up recurring revenues to 33% and force services to over 70% of sales.
It also hands the firm a Catalist accreditation, along with security and expert services and infrastructure consulting businesses where 2e2 has been weaker, a point previously acknowledged by Burt.
The price of the acquisition raised a few eyebrows when the bid first surfaced but it represents an EBITDA multiple of 9 said 2e2.
In a statement, Graham, Kingsmill, CEO at Netstore UK said the acquisition "made sense" for his firm and its customers by bolstering the services portfolio and by combining economies of scale would make the firms more efficient.