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Another chapter has been written in the story of Colt’s managed cloud services business, which has been acquired by Getronics.
The tale of the infrastructure specialists efforts to provide managed cloud services looked to have come to a full stop back in June when the decision was made to pull the plug on the operation.
Competing in a market against some of the large global players made it difficult for Colt and in the end it was felt that money would be better spent in other core parts of its business.
“Our IT services business would continue to need considerable investment in the short-to-medium term in order to deliver profitability and we do not believe this business can compete and grow successfully with a level of risk that is acceptable,” the firm stated at the time.
After the June announcement Colt stated that it would honour existing customer service contracts until they expired, which could take two to three years, but it would not take on any fresh business.
Not long after that announcement Colt found itself with new owners in the shape of Fidelity and its going restructuring plans kept going.
Getronics also knows what life is like under different ownership and the latest deal shows just how much backing it has from parent Aurelius.
Getronics views the acquisition as a chance to expand its European business and increase its relationship with Colt to provide on going support based on its network, voice and data centre offerings.
The terms of the deal were not disclosed but in the last set of results for the managed service operation it was bringing in around €78m in revenue.
As part of the acquisition Getronics will pick up the managed cloud business, which was operating in ten countries - UK, France, Germany, Spain, the Netherlands, Belgium, Italy, India, Romania and Switzerland - and access to around 600 customers.
It will be combined with the existing cloud platform that Getronics offers and is seen as the next stage in a shift towards services that was started in earnest back in 2012 with the Aurelius acquisition.
“We have been relentlessly pursuing our digital transformation and portfolio shift strategy and today’s announcement demonstrates our commitment to offering the latest, best of breed IT services to our customers,” said Mark Cook, Getronics Group CEO.
“We are delighted with this latest acquisition, and we are looking forward to welcoming the transferring customers and employees into the Getronics family in the New Year,” he added.
From a Colt perspective the deal makes sense for the staff who have been working in that part of the business and provides more security to the customer base.
Rakesh Bhasin, Colt CEO, said that the transaction was a “positive step for our customers” add well as the staff.
“This transaction is a positive step for our customers as it provides an expanded set of innovative services and long term security from an established, growing company. It also provides an exciting future for our employees. We look forward to partnering with Getronics through this transaction on a long term basis,” he said.