The acquisition follows a 35 per cent increase in Intrinsic’s turnover and 117 per cent profit growth for its financial year ending 30 November 2010. Intrinsic’s turnover reached £28 million in 2010 (FY09: £20.7 million), while operating profits rose to £2.5 million – up from £1.2 million in 2009. The company cited its service-led, shared risk approach to solution deployment as a key factor in its bullish growth.
The acquisition will bring an additional £10 million in turnover to Intrinsic, which has strong growth plans for 2011.
Intrinsic had stated in late 2010 that it was seeking to complement its strong organic growth with a series of acquisitions to strengthen the company’s cloud computing proposition.
Mike Mason, Managing Director, comments: “We reached a stage where we could effectively integrate a strong channel solutions provider with a complementary proposition into the business. Acquisitive growth is a key step in our growth strategy and Dataplex is an excellent fit. This investment will both strengthen our market position in the UK and create operational synergies. The collective skills of our employees will drive innovation and enhance value for our clients, and effectively completes our enterprise data centre or Private Cloud Environment proposition.”
Mason continues: “There is market appetite for ‘private cloud’ solutions, where companies retain core applications and storage infrastructure, ensuring corporate data is safe and secure. Through building a virtualised data centre with a view over application availability, as well as providing a seamless user experience through market-leading voice data integration and fixed mobile convergence, we can realise significant growth in this market and we’re now in a prime position to deliver on this promise.”
Corporate finance advice was provided by corporate finance boutique Ballard Evans, who originated the transaction. Corporate law firm Napthens provided legal advice.