Two West Yorkshire-based IT businesses have joined forces with the acquisition of Wakefield-based Servatech by Leeds company Pure Data Solutions for an undisclosed sum.
Servatech, based in Chapelthorpe, specialises in managed services, client hosting, remedial maintenance, disaster recovery and cloud service provision. It employs about 40 technically and services-based personnel, all of whom will retain their roles following the sale.
Pure Data Solutions is a reseller and managed services provider, based in Farsley, whose key expertise includes consulting, supplying, installing and support services. The company employs over 50 sales, administration, management and other personnel, with the Servatech acquisition representing its entry into the IT services market.
The combined organisation is expected to record a turnover of about £17.7m and a pre-tax profit of around £1m in its first year. Pure Data Solutions recently announced a turnover of £14.2 m and gross profit of £500,000 in the 12 months to May 31 this year.
Servatech has been sold by Pino Pastore and Steve Spence, who founded the business 15 years ago. Mr Pastore will now take early retirement but Mr Spence will have responsibility for services sales in the enlarged business, where he will operate alongside senior colleagues such as Graeme Atkinson, who will head service operations.
Pure Data Solutions and Servatech will continue to work from their existing sites, with the latter’s premises becoming the group’s new headquarters and registered office, and no plans existing to accommodate the enlarged team in a single location.
Stephen O’Brien, chief executive officer, Pure Data Solutions, said: I’m delighted to welcome Steve, Graeme and the rest of the Servatech team to the group. I’m satisfied with the deal and hugely excited by this important milestone in the growth of Pure Data Solutions, not to mention the significant increase in deliverable capabilities the acquisition brings to our enlarged client base.
“This takes us from being a successful local product reseller to a nationwide IT solution and services integrator.”
Mr O’Brien explained that as both businesses’ offerings and culture were unique, the only combining would be noticed through Servatech’s plethora of managed services being made available to Pure Data Solutions’ clients and the acquisition’s customers benefiting from his own organisation’s greater buying power.
He added: “Going forward, we intend to push further south and make additional synergistic acquisitions, increasing our geographic coverage and capability.”
Mr O’Brien said he and his colleagues were very passionate about their work, resulting in an efficient, prompt and honest service. He said their goal was always to create a sense of family, with a culture of open and warm communication within a supportive working environment. The acquisition of Servatech underlined their commitment to bringing the best-of-breed in all that is IT to the valued, combined client-base.
Mr Spence said: “We were impressed with the progress Pure Data Solutions has made in such a short time. Their sales drive and new business development engine is incredibly efficient.
“Pino and I felt the proposed sale represented a great opportunity for our loyal staff and clients to be part of an exciting growth story. I’m now really looking forward to working with Steve and his dynamic team.”
To coincide with the acquisition, Colin Meakin, of Huddersfield-based Excel Business Management Consulting, which advised Pure Data Solutions on the transaction, has been appointed the enlarged company’s chief operating officer, reporting to Mr O’Brien. Mr Meakin is a former group sales director of ICM
Computer Group – now Phoenix IT Group – and chief executive officer of Concorde IT Group. The acquisition means the successful working relationship he enjoyed with Mr Atkinson while the pair were at ICM and Phoenix for more than 20 years has been re-established.
Pure Data Solutions was also advised on the purchase by Geoff Botting, of the FD Centre, Robert Brook, of Pudsey-based accountants and business advisers BPR Heaton, and Marcus Armstrong, of Leeds law firm Shulmans. All three firms, like Excel Business Management Consulting, specialise in mergers, acquisitions and disposals. Servatech was advised by Simon Denny, of Halifax-based accountants BM Howarth, and Rachel Ward, of Clarion Solicitors in Leeds.