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ANS adds AI depth with Makutu buy

Consolidation continues at both partner and vendor level, with Mitsubishi Electric also active on the M&A front

Gaining artificial intelligence (AI) skills continues to be a motivation for consolidation across the channel, with ANS picking up Derby-based consultancy Makutu.

The move for the data engineering and AI specialist will provide ANS with more expertise around those much in-demand areas, and gets the firm back in the M&A game.

ANS picked up Dynamics 365 specialist Preact back in 2022. It has made a positive impact on the business, and it is looking to have similar success with the Makutu move.

“Makutu’s expertise in data platforms, AI and IoT [internet of things] will enable us to accelerate our mission to make technology accessible and impactful for all organisations,” said Richard Thompson, CEO at ANS. “Customers increasingly recognise that AI success depends on strong data foundations. With Makutu joining our team, we are in an even stronger position to help organisations across the UK prepare for that future.

“This acquisition builds on the success of previous deals, including our acquisition of Dynamics 365 specialist Preact. It reflects our strategy of combining strong organic growth with selective M&A activity to create one of the UK’s leading Microsoft-focused digital transformation partners.”

The deal, the terms of which were not disclosed, adds Makutu’s 25-strong team of data architects, engineers and AI specialists into the fold, and will give ANS the ability to talk to customers about getting their data ready for the implementation of AI.

Makutu has been around for five years, and has been recognised by some industry watchers as standing out from the general startup fold because of its data and AI focus and expertise. The business aligns with ANS’s focus on Microsoft, with a deep understanding of what is required to support users operating in that environment.

Opportunities for innovation

The addition of Makutu to the existing 650 technology specialists and business experts working at ANS should provide the new colleagues with a chance to generate growth and fresh opportunities for innovation.

Simon Blewitt, chief technology officer at Makutu, said the move would be a positive one for the team, and provide more opportunities for its existing public and private customer base.

“Joining ANS gives our team the scale and reach to maximise what we do best – designing and delivering data and AI solutions that transform organisations,” he said. “We are proud of the reputation we have built in the Microsoft ecosystem, and are looking forward to combining our innovation and technical depth with ANS’s national presence and strong community values.”

Security market

Elsewhere, consolidation has also been occurring at vendor level, with Mitsubishi Electric picking up Nozomi Networks to accelerate the firm’s position in the security market.

Nozomi, which will continue to run as an independent subsidiary, indicated it would remain business-as-usual for partners, with no changes to its brand, leadership or operations.

Satoshi Takeda, senior vice-president, chief data officer and chief information officer at Mitsubishi Electric, said the deal would add more security capability to the business.

“We are excited to welcome Nozomi to the Mitsubishi Electric family,” he said. “Its cutting-edge OT security technology and rapid development philosophy have earned it a strong reputation. By combining Nozomi’s strengths with Mitsubishi Electric’s extensive expertise and capabilities in OT, I believe we can achieve even more.

“This acquisition will enable us to co-create valuable new services while supporting Nozomi’s commitment to innovation and customer flexibility. Together, we can help our customers achieve their digital transformation goals while enhancing security, efficiency and resilience.”

In response, Andrea Carcano, co-founder and chief product officer of Nozomi Networks, stated: “By combining Mitsubishi Electric’s century of global industrial expertise with Nozomi Networks’ innovations in data science, AI/ML and industrial cyber security, we have a unique opportunity to create a new generation of AI-powered solutions that will strengthen cyber and operations to power new innovations for customers across all OT/IoT use cases and industries around the world. Together, we’ll make the world’s critical infrastructure safer, more resilient and more efficient.”

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