Technology Services Group has acquired IT software and services company Concentrix. The company called the acquisition a "key step" in the growth strategy of TSG that will provide "significant capability" in customer relationship management (CRM) software implementation, one of the company's target growth areas.
The acquisition is the 24th for TSG since its inception in October 2003, and represents continued progress in building a U.K.-wide service network, providing complete IT services to small to medium-size businesses. Concentrix, which currently employs 61, is a business software, CRM and IT solutions provider based in Loughborough, U.K.
At present, the company provides business software and infrastructure solutions, combined with support services to customers throughout the U.K. such as Royal Mail, Thomas Cook and E.ON UK. With a focus on both Microsoft and Sage applications, Concentrix has a reputation for the delivery of CRM products from these two international software authors.
TSG, which already looks after thousands of Sage and Microsoft customers, has recently experienced an increase in CRM interest as customers look for ways to grow sales and improve service levels during these competitive trading times. TSG said Concentrix's wealth of CRM product knowledge and skills makes the business an "excellent fit" for TSG.
"The Concentrix acquisition is a significant development in TSG's growth strategy and another strategic step in our quest to become the U.K.'s No. 1 SME IT services provider. It increases our customer base and will considerably add to our existing Sage and Microsoft Dynamics skills and capabilities," said David Stonehouse, TSG's chief executive. "We are particularly impressed with Concentrix's expertise in the CRM arena, covering both Microsoft Dynamics and Sage CRM products, and are looking forward to this team leading TSG's growth in the delivery of CRM solutions. Additionally, this acquisition should accelerate our progress with cloud computing and SharePoint technology, both being areas which TSG and Concentrix have recently made significant investment."
This latest acquisition means that TSG now employs over 500 staff and provides services to thousands of midmarket companies nationwide, from Southampton in the south, to Aberdeen in the north. Following the acquisition of Concentrix, TSG intends to continue its expansion plans with further acquisitions across the U.K.
The acquisition process was overseen on behalf of TSG by Newcastle-based legal firm Ward Hadaway through partner Katherine Hay-Heddle, working with corporate finance organization UNW and partner Neville Bearpark. Concentrix was advised by Spearing Waite LLP through partner Martin Smith.
"I am very proud of the business we've built from a standing start in 1999. We've established ourselves as key application partners with both Microsoft and Sage in the U.K., being awarded the -Sage CRM Business Partner of the Year' in 2009, hold the accreditation of a Sage Circle of Excellence member and are a Microsoft Gold certified partner," said Concentrix's Managing Director Ian Dawkins. "Becoming part of TSG will allow us to continue our growth and provide our existing customers with a greater depth of services through access to the full TSG product portfolio including business software, remote support, cabling, wireless systems, telecoms and virtualization solutions. We look forward to sharing our CRM expertise with TSG customers and continuing to provide our customers with the high levels of service they receive today."