Reseller minnow Shift F7 has consumed bite-sized managed services player Datashare Solutions Ltd (DSL) for an undisclosed amount.

In a statement on its site, Shift F7 boss Garry King said it had historically outsourced some services deployment to fellow Surrey-based firm DSL.

"Naturally acquiring a company along with its employees and clients is a better way to grow in this economic environment," said Shift F7 boss Garry King.

Both firms file abbreviated accounts with Shift F7 showing net assets of £332,000 in the year to 31 May 2011, largely flat on the previous year.

In the year to 31 March 2012, DSL had total net assets of £165,000 compared to £121,800 in fiscal 2011. In the last full p&l accounts, back in 2010, DSL had sales of £2.4m, up year-on-year from £2.31m and made an operating profit of £97,000, up from £83,000.

Shift F7 said the DSL deal is the first buy in a "strategic plan to acquire non-competing IT businesses", but will need to set its sights on beefier targets to be a real threat to large resellers.

DLS boss John Eady - who will remain at the helm of the firm - claimed size matters in the corporate space and by coming together the companies had gained some economies of scale.

"The directors of DSL have recognised that to effectively compete for major corporate business and the subsequent ongoing supply of services, it is necessary to have a critical mass," said Eady.

Shift F7 has a background in reselling storage, infrastructure and licensing and DSL operates a managed services unit alongside a data centre and DR services business. ®