Financial terms were not disclosed, but PTG funded the deal itself and predicts the buyout will increase its annual turnover beyond about US$39 million. The acquisition will also see the company’s headcount grow by 120 employees.
Keytech was founded more than 25 years ago, going on to specialize in backup and data continuity, and managed services.
Pure Technology Group (PTG): M&A Experience
Pure Technology Group is a relatively new name, though the Leeds-based company has been around for some time. The moniker surfaced last year when Pure Data Solutions merged with Servatech -- which Pure bought in 2014 -- to form a single company.
The deal will grow PTG’s footprint in the region, with the Wigan-based Keytech’s offices set to complement Pure’s existing sites in Leeds and Wakefield. The acquisition will also grow the cloud, Data Centre, and IT managed services capabilities of both organizations, the firm said.
PTG’s revenue was more than US$25 million for its 2017-18 year. It was the highest in the Group’s history and equated to a 40 percent growth over the previous two years, though ChannelE2E doesn't know if M&A or organic growth drove the revenue boost. PTG wants to reach £40m (approximately US$52 million) in revenue in 2019, the company has previously disclosed.
More MSP Acquisitions on the Way?
It sounds like PTG will continue to pursue more M&A deals. COO Cliff Fox says the company’s growth strategy was first envisioned in 2016 to include acquisitions working alongside organic development. “Geographic expansion was a big part of that and will continue as we search for the next suitable company – ideally within the M25 radius,” he said. “With new strategic services launching, Keytech coming on board and further acquisition in the pipeline, we have another big year ahead of us.”