Acquisition creates £400m software group

Software services and security solutions provider Bytes has acquired York headquartered IT reseller Phoenix to create a £400m turnover group.

The £35.9m acquisition by Leatherhead-based Bytes gives it a larger presence in the North while gaining a bigger hold in the public sector.

Phoenix has a presence on framework agreements for public sector procurement in the UK and is a provider of end-to-end IT solutions including software licensing, software asset management and IT services. It has an annual turnover of more than £130m and employs 165 people.

The acquisition creates combined revenues this year of around £400m and a total staff headcount of around 480 and will see the group will become an important scale partner to many of the major global IT vendors.

Bytes was advised by lawyers Moore Blatch, led by technology, media and telecommunications specialist and corporate partner, Peter Jeffery.

Jeffery said: “This important strategic acquisition sees two specialist  IT services companies come together. We wish them well for what promises to be an exciting future.”