Connectivity specialist Convergence Group has slurped Redditch HQ’d Cisco Gold services outfit Networks First for an undisclosed sum, in a conjoining of firms that largely sell to trade customers.
Networks First sells data centre and LAN services, and Convergence provides web connectivity, and point to point and WAN services - it built and runs an MPLS network, purchasing ethernet services from BT Wholesale and Virgin Media in the UK.
David Joplin, sales and marketing director at Convergence, said the buy lets it close portfolio gaps in that it can now provide more network services while “connecting customers sties”.
All of the 104 staff at Networks First will transfer to the new owners, including MD Tom Mulvnaey and his management team, taking the combined group to circa 170 heads.
Networks First chairman Peter Titmus will step back from daily involvement in the business but it is unclear what he plans to do with his day, presumably spend some of his hard-earned cash.
Both companies historically sold to end-users but in recent years have provided services to channel customers that don’t have the capabilities in-house and want to outsource the work.
In the year to December 2014, Convergence made a net profit of £1.729m on turnover of £24.2m, this compared to net income of £1.22m and revenue of £23.5m in the prior year.
Over at Networks First, turnover for the 12 months ended 31 March 2015 was £11.36m versus £9.68m in the previous year and net profit of £386k, was up from £83k.
Titmus was unavailable to comment at the time of writing. ®