The Channel logo

News

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

Opinion

Lightning

Jack Clark

Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Microsoft CEO Satya Nadella
ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead

Features

Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club
SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on