Consolidation continues with M Group snapping up Telent

Infrastructure specialist M Group has bolstered its market position with a move to acquire operational technology player Telent.

The deal will see M Group, which has an established position supporting customers in key sectors, including water, energy, rail and aviation, highways and telecom, with the expertise Telent has developed in delivering digital solutions for critical national infrastructure customers across UK&I.

Although both firms target similar customers, Telent provides M Group with additional security, comms and network infrastructure expertise that can be taken out to its existing customer base. The deal will also widen its exposure to the public sector, particularly defence, education and emergency service customers.

Chief executive of M Group Andrew Findlay described the move for Telent, which is subject to regulatory approval, as “a hugely transformative deal” for the business.

“We recognise the strength of Telent’s differentiated capabilities, market position and talented people that make it a great business. With the acquisition of Telent, M Group will be even better placed to deliver essential infrastructure services for life,” he said.

“Our ambitious growth strategy reflects a combination of organic and inorganic growth, and this acquisition builds on our strong track record of strategic M&A. It will enable us to deliver even greater value and expertise to our clients and so help the people, communities and economies of the UK and Ireland adapt to a changing world.”

In response, Jo Gretton, chief executive of Telent, said that joining forces with M Group “marks an exciting new chapter for Telent” and would strengthen its position in the market.

“Telent is a business with a long trading heritage and an excellent reputation. With M Group’s extensive infrastructure expertise and scale, we are well-placed to accelerate our growth and continue to be a trusted partner for organisations at the forefront of the digital revolution,” she said.

Elsewhere on the M&A front, earlier this week, digital agency Cantarus acquired FlexRM, a specialist Microsoft Dynamics 365 CRM integrator. Cantarus will now be able to provide a wider range of services, integrating CRM and digital services into one offering for customers.

“People expect extraordinary, personalised and consistent interactions with the organisations we work with,” said Lee Adams, CEO at Cantarus. “With an ever-increasing number of digital and physical touchpoints available for use, excellent communication orchestrated across many channels has become increasingly difficult to achieve, yet ever more vital for our clients.”

Steven Madden, commercial director and co-founder of FlexRM, said there was a clear potential by bringing the firms together: “When our CRM product is integrated with the digital platforms Cantarus delivers, it has a transformational impact on our clients’ growth, value delivery and agility. The need for full integration has become more profound and urgent for clients, and is one of the key reasons why we have joined the Cantarus fold.”

The move by M Group continues a busy month on the channel consolidation front. Already over the past couple of weeks, there have been several deals struck at both reseller and distributor levels, with Softcat, Exertis IT and Focus Group actively expanding their operations through acquisitions.