The Channel logo


By | Team Register 12th August 2008 10:41

2e2 rolls up Netstore for UK channel glory

Scale model

2e2, the private-equity backed reseller group, is buying Netstore for £57m in cash.

The deal appears to be more about scale than heavy cost-cutting - 2e2 says customer overlap with AIM-quoted Netstore is limited. To 2e2, bigger means better customer retention, and easier-to-find and keep good staff.

And of course, it brings nearer the day when the company is big enough to talk up a good IPO. Right now, 2e2 has 1400 staff in the UK and the Netherlands and claims annual run-rate revs of £240m. Perhaps its best-known acquisition to date, certainly in the UK, is Compel, bought for £53m last year.

Netstore describes itself as a managed services provider. It runs four data centres for mid-market customers, and it also has security and consulting divisions.

In the latest interims, the company made a net loss of £266,000 on revenues of £19.6m. Set up in 1996, Netestore has bought up five resellers along the way, so it's no stranger to roll-ups - if not at the receiving end.

In February, it announced a strategic review, following "early-stage approaches from third parties".

2e2 release.

alert Send corrections


shutterstock_183801788_container ship

Chris Mellor

The SAN growth glory days are well and truly over, so where next?

Tom Whipp

Insurance industry insider tells all
Crypto fingers
Kids on wall. Pic: US Army/Capt Emily Skolozynski


Better to play nicely than try to muscle in on territory


Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire
The Seeing Eye by Valerie Everett, Flickr, CC2.0
Follow the money – or, at least, our projections
Boats storm girl photo via Nikolina Mrakovic
The puppets from Team America: World Police gather at a bar for drinks.