Irish Communications Provider Welltel Acquires Strencom
This is technology M&A deal number 325 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Dublin and Cork, Ireland-based Strencom provides managed secure connectivity and cloud services. The combined company is forecasting revenues of €38 million this year, or roughly US$46 million.
Welltel plans to leverage Strencom’s infrastructure to grow its channel relationships and build on its partnerships with Cisco, Fortinet and Palo Alto Networks, the company said. Strencom’s platform is also the only VMware cloud-certified platform in Ireland.
The addition of Strencom’s expertise completes Welltel’s managed secure connectivity and cloud services portfolio and makes it Ireland’s largest business communications company, according to Welltel.
Welltel’s Growth Strategy
Prior to the acquisition, Strencom had 30 employees across connectivity, cloud, sales, and operations. Their addition will bring Welltel’s total headcount to 180 employees. Strencom will continue to trade as a standalone brand in the interim, the company said.
Founded in 2015, Welltel has been pursuing a “buy-and-build” strategy. Previously, the company acquired contact center specialist Capstone Intelligent Solutions in May 2021. The company says it plans to pursue further acquisitions this year across Ireland, the UK, and Europe.
Welltel Acquires Strencom: Executive Commentary
Ross Murray, CEO, Welltel, commented:
“Strencom’s secure managed connectivity and cloud solutions expertise rounds out our offering for Irish enterprises. Strencom’s secure data connectivity, cloud infrastructure and managed hosting are new services for the group, and when layered with Welltel’s specialist voice solutions, creates a one-stop provider for business customers. It drives our secure connectivity proposition and offers a natural migration path to the secure cloud. This is especially important with the acceleration of the digital workplace, and in securing the hybrid workforce of the future.”
Tim Murphy, CEO, Strencom, added:
“The acquisition by Welltel allows us to achieve our ambitions for growth within the Irish market and we are delighted with the joining of these two great brands. In addition, this is a great fit for Strencom staff and customers, as it provides more opportunities for the business as well as offering a greater depth of solutions with the added portfolio of unified communications and IT services that Welltel brings. In Welltel, I see a shared purpose with Strencom as well as similar core values, and after 20 years of building Strencom from the ground up, it was important that any acquirer would be right for both staff and customers, and I think we have achieved that with Welltel.”