Claranet acquires two UK services providers to enhance disaster recovery and Linux capabilities

Techgate and LinuxIT acquired by Claranet as company continues expansion drive across Europe

Claranet, one of Europe’s leading managed services providers, has acquired Techgate, a business continuity and disaster recovery specialist, and LinuxIT, an expert in Linux-based technologies, for undisclosed sums. The UK-based companies, which are being incorporated into the UK operations of the Claranet Group, complement Claranet’s existing portfolio and will add to its capability to deliver industry-leading IT services.

Founded in 2001, Techgate is an enterprise-class provider of highly-available, secure and flexible IT infrastructure services, focusing on business continuity, disaster recovery and back-up services. With offices in Docklands, London, and Chelmsford in Essex, they operate two data centres and employ 27 staff. Techgate has more than 200 customers including BLM, Capita, Carestream Health, DS Smith and FSL. Revenues for the year ending 31 December 2014 were £4.9 million.

LinuxIT is an IT services company specialising in professional and managed services for Linux-based applications. Founded in 1999 and based in Bristol, the company provides end-to-end best practice managed services for the lifecycle of Linux-based technologies, be they on-premises or hosted. With 20 members of staff, LinuxIT works with over 200 customers, including ITV, Hopkins Architects, Euro Car Parts, Liz Earle and CAE. Revenues for the year ending 31 December 2014 were £2.6 million.

The management and employee structures of both companies are being maintained and the companies will continue to trade under their respective brand names. In joining the Claranet Group, Techgate and LinuxIT bring with them a wealth of experience and expertise, which will enhance Claranet’s ability to do amazing things for its customers and facilitate further innovation of its services.

The acquisitions broaden Claranet’s existing service portfolio, and sees the Claranet Group grow to over 850 employees, with over 5,000 customers and operations in six European markets. The newly enlarged Group will have annual revenues of £150 million.

Charles Nasser, CEO and founder of the Claranet Group, commented:

Techgate and LinuxIT are leaders in their respective fields, and make an exciting fit for the Claranet Group as we look to continue to evolve our portfolio and offer a comprehensive end-to-end application-led service. These acquisitions present a good opportunity for our customers, and those of Techgate and LinuxIT, to take advantage of our expanded suite of services, safe in the knowledge that they are supported by a provider on a strong financial footing.

He continued:

It is our ambition to continue to grow in our existing six markets organically and by acquisition, and in acquiring Techgate and LinuxIT we have taken another step forward in terms of our growth and capabilities, expanding our reach into new territories in the IT services sector.”

The acquisitions have been funded through debt and supported by Claranet’s partnerships with The Royal Bank of Scotland (RBS), Ares Capital Europe, Goldman Sachs and Abry Partners, which demonstrate their confidence in Claranet’s growth strategy.

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