The Channel logo

News

By | Paul Kunert 23rd November 2012 15:54

Claranet gulps down rival STH in managed services merge

Deal valued at £55m

British managed services player Claranet has hoovered up rival STH Ltd and its subsidiary, Star Technology, in a deal it says values the acquired firm at £55m.

The fragmented mid-market MSP space is ripe for consolidation with numerous deals done this year including Redstone's acquisition of Maxima. And it's a space that many of the major vendors are chasing.

A chest-thumping Claranet CEO Charles Nasser tried to fly the flag for Blighty, describing the acquisition as a "British entrepreneurial success story".

The combined organisation will have group revenues of more than £120m, 700 staffers and 4,500 customers across the UK, France, Germany, the Netherlands and the Iberian peninsula.

Customers of the joint firms include Airbus, Amnesty International, Channel 5, De Vere Hotels and Richmond Events.

While Claranet has concentrated on IaaS and virtual data centres, Star's push has been on unified comms, remote desktop and security services, so the new portfolio will span data centre to desktop services.

The exact buy price was not disclosed, but given the wording, it is likely that Claranet assumed STH's debts as a £55m valuation would seem steep, at least based the last set of available financials.

In the year to 31 July 2011, STH posted an operating loss of £1.58m, albeit narrower than the £3.556m losses recorded in the previous year. Sales grew 6 per cent to £45.9m.

As for Claranet, its UK numbers for the year to 30 June 2011 show a dip in revenues from £38.3m to £37m and an operating profit of £2.13m, up from £934,000. ®

alert Send corrections

Opinion

Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella
Stranded_ships

Chris Mellor

Thousands of layoffs announced as spinning rust enters its death spiral

Features

STRASBOURG, JUNE 29, 2016: The seat of the European Parliament. by Marco Aprile for shutterstock. EDITORIAL USE ONLY
Plan b, image via Shutterstock
EU workers, new markets: post-Brexit pressure on May & Co
Tough question, pic via Shutterstock
Honest mistake with your licensing? Audit police look at it on a 'case by case basis'