Altron unit Bytes UK buys Blenheim, in bid to grow ICT footprint abroad
Bytes UK, a subsidiary of JSE-listed Altron, has bought technology firm Blenheim for £35.9m, it said on Friday.
Altron said the transaction "fits in" with its strategic objectives of growing its international ICT footprint in selected regions.
Altron has sold its noncore businesses to focus on the information and technology sector.
The deal will, among other things, make the Bytes UK group a significant Microsoft (licensing solution provider) in the UK. The acquisition will also add systems integrator/services capability to the Bytes UK group, Altron said.
Blenheim is the holding company of Phoenix Software, which specialises in end-to-end IT infrastructure solutions including software asset management, software licensing, licence-management as a service, hardware and devices, data storage, and data centre infrastructure management.
Phoenix Software will add 3,100 new customers to Bytes UK, which will provide further cross-selling opportunities.
According to Altron, Phoenix has been operating as a value-added reseller in the UK for more than 27 years and has vast experience of advising customers on the "best-fit" software licensing, hardware, software asset management, and general IT services and solutions currently available.
Intellidex’s financial analyst, Phibion Makuwerere, said for Altron the obvious benefits were geographical diversification and expansion of cliental profile.
"However, a drawback is the nature of Phoenix’s business model, which is low-margin. But integrating it with its current operations should help that. An attractive feature is that Phoenix operates in a double-digit growth market," said Makuwerere.