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A few weeks since Babble sealed its last acquisitions, the cloud service specialist had dipped back into the M&A market with a further double swoop.
The firm has deepened its Microsoft expertise with the addition of TechQuarters and has added to its support and training depth with the addition of Stonegate.
TechQuarters is a solid Microsoft operator and has been awarded Microsoft Cloud Champions two years running and was named the vendor’s World Cloud Partner of the Year for SMBs. The firm comes with a business model that includes 85% of recurring revenues and organic annual growth of over 40%.
Babble fought off 20 other suitors to land the firm, marking its 29th acquisition, because it recognised the benefits it would have for its position in the Microsoft channel.
Brian Parker, founding director at ICON Corporate Finance, which advised on the deal, gave an insight into the acquisition process: “This was a hugely competitive process. The combination of a first-class team, strong organic customer growth, and recurring revenue attracted upwards of 20 bidders. We believe Techquarters has found the best possible home as part of Babble.”
For Babble, the deal adds more depth to its Microsoft capabilities and relationship and will support its ambitions to stand head and shoulders above its rivals.
“We’re already a Microsoft gold partner holding Microsoft cloud solution provider [CSP] status, growing faster than any other Microsoft CSP. This deal accelerates our capabilities for the full range of Microsoft solutions that businesses rely on and cements Babble as the only UK cloud services provider of both comms and IT MSP solutions at scale,” said Matt Parker, CEO of Babble.
“This moves us another step closer to our aim of being the UK’s largest and preferred CSP, with local ‘hubs’ located across the country. The long-term goal of creating these hubs is so we can run the business as a national one, while still providing customers with the individual and local support that they need,” he added.
In addition, Babble has picked up Stonegate, a Microsoft-focused MSP based in Bury, which adds more UK coverage and cloud skills to the business. The terms of both deals were not disclosed.
“The acquisitions of both TechQuarters and Stonegate will allow us to further diversify and broaden our offering in order for more companies to successfully adopt the cloud. We are laser focused on delivering exceptional quality of service for our customers, ensuring we are always by their side, whenever they need us, helping them to transform their businesses,” said Parker.
These deals follow on the action in early April, when Babble picked up picked up Gateshead-based mobile services provider Corporate Wardair Limited (CWL) and Chester-based telecoms and IT service provider Avandda. Some 14 of the firm’s 29 deals have taken place in the past year as it took advantage of the investment it received in 2020 from Graphite Capital.