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By | Alexander J Martin 17th August 2016 18:51

Adapt is finally bought by American biz Datapipe

Indepedence up in smoke

Struggling London-based managed service provider (MSP) Adapt has fallen into the arms of acquisitive US firm Datapipe for an undisclosed amount.

After its acquisition of cloudy startup DualSpark last year, Datapipe has now purchased UK-based pure-play MSP Adapt to offer itself a bit more in the European market.

New Jersey-based Datapipe offers support for multiple cloud platforms including AWS, Microsoft Azure, and its own private hosted cloud dubbed Stratosphere.

MSPs are beginning to consolidate following years of accelerated company development, which some fear may have created a degree of over-supply in the market, especially in the cloud space.

Questions about profitability and growth had particularly plagued Adapt, which was expected to sell last year but had struggled to appear pretty to potential investors due to stalling company growth.

Announcing the acquisition by Datapipe, Adapt CEO Stewart Smythe said: "We are seeing emerging customer requirements for a tactical and strategic presence overseas, so it makes sense for us to advance the UK's capability in a global market rather than create more bulky domestic organisations."

In other words, Adapt ran a £5.56m operating loss in the last financial year and needs to leave the UK to survive. "[T]his agreement is about mutually enhancing regional and global capability," Smythe noted.

Robb Allen, CEO at Datapipe, said: "Our similar approach to guiding clients on their cloud journey makes the acquisition a natural fit for us and will increase our scale and service capabilities in the United Kingdom and the broader European market." ®

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