Cloud Service Provider Buys MSP: Same Story, Different Country
It looks like M&A activity across the IT channel is spilling over into Europe. A prime example: Cloud Direct, a UK-based provider of packaged cloud services, has acquired iHotdesk — a managed services provider (MSP) in London. Financial terms were not disclosed.
The deal follows Cloud Direct’s June 2015 acquisition of Datel Business Systems Ltd, an IT hosting and infrastructure solutions provider. The two acquisitions nearly double Cloud Direct’s revenues for 2015, the company said — though actual revenue figures were not disclosed.
Cloud Direct, founded in 2003, has gradually expanded from cloud backup to a full portfolio of cloud services. The iHotdesk deal expands Cloud Direct into on-premises IT support, according to CEO Brett Raynes. The new services will include support for on-premises application servers, desktop environments and network infrastructures.
Mergers, Acquisitions and More
Self-funded for more than a decade, Cloud Direct in 2014 raised £2.74 million — a move that helped to fund the two recent acquisitions. Overall, Cloud Direct’s business sounds impressive — though we don’t have profit figures or margin estimates to back up that hunch. Still, the company has helped more than 4,000 customers to embrace the cloud since 2003. The company has also earned key accreditations (for example: ISO 270001:2013 and ISO 27000), while also working closely with Microsoft on small and midmarket cloud solutions.
Meanwhile, the overall merger and acquisition landscape has been very busy for VARs, MSPs and CSPs — particularly in late 2015. Earlier today, two key Oracle channel partners hooked up in a buyout. And ChannelE2E has been tracking additional deals. You can track them, too, by visiting: ChannelE2E.com/category/milestones.