Fri, 31 Mar 2023 | BUSINESS SALE
Babble, a private equity-backed UK cloud service provider (CSP) and one of the main consolidators in the UK cloud industry, has completed a double acquisition. The firm has acquired communications solutions provider Midland Comms and completed a carve-out of MSP Cloudstream Technology Limited.
The acquisitions, part of Babble's ongoing strategy to strengthen its position in the UK’s CSP market through consolidation, bring its total number of acquisitions in the first quarter of 2023 to five. In February, the firm made another double acquisition, acquiring telecoms and IT services firm Avandda and mobile services provider Corporate Wardair Ltd (CWL). Earlier this month, meanwhile, it beat competition from a reported 20 bidders to land Microsoft partner TechQuarters.
Babble says the two new acquisitions collectively contribute £4.5 million in revenues, over 90 per cent of which is recurring, which takes the group’s overall revenue run rate past £100 million per year. Additionally, the acquisitions will bring more than 30 new employees to Babble.
Midland Comms, based in Tewkesbury, has been providing communication solutions to over 500 SMEs across the Midlands for almost 50 years. Cloudstream's MSP business, meanwhile, is headquartered in Fife and has more than 350 customers across Scotland, the North of England, and Northern Ireland.
Babble CEO Matt Parker (pictured above) said: “These two strategic acquisitions significantly strengthen our position as the only UK Cloud Service Provider of both Comms and IT solutions at scale.”
“They bring high-quality retained customers and fantastic, expert people into Babble. This also further extends our geographical reach across the UK, bolstering our ability to offer nationwide coverage with local support to give customers the best possible levels of service.”
The latest double acquisition takes Babble’s total number of deals up to 30 since the start of 2019, with 16 of these takeovers coming in the past year. The company, which is backed by Graphite Capital, was recently named as the UK’s second most acquisitive company in a report by ICON Corporate Finance.
Through its M&A strategy, the group targets regional businesses with the aim of becoming the UK’s largest managed CSP, capable of delivering support across the UK and simultaneously meeting local needs through an extensive network of regional locations.
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