11/10/2010 11:56:00 AM
Lumison plans 'buy and build' strategy
IT and unified comms provider Lumison is on the acquisition trail after being bought by Bridgeport Development Capital (BDC) for an undisclosed sum.
The deal sees BDC acquire a majority stake in Lumison, through which it will launch a 'buy and build' strategy to expand Lumison's IT and unified comms services, which will be targeted at the SME market.
Lumison, which is based in Edinburgh and London, has 2,500 clients, including corporates RM and Drambuie. The acquisition will see founder Aydin Kurt-Elli remain as chief executive of the company that he started up as EdNet in 1995.
Bridgepoint director Mark Howling, formerly a senior executive with Computacenter, will become executive chairman of the business. BDC said his brief is 'to work with the existing management team to grow the business by serial acquisition and organically'.
Kurt-Elli said: 'We now have the firepower available to expand and accelerate the range of services we can offer our loyal customer base thanks to this timely and strategically important development for our business.'
BDC partner Alan Payne said: 'Our aim in acquiring Lumison, an already highly regarded, profitable company, is for it to become the platform for further growth to which we can add, through selective acquisition, a broader and deeper range of services.'
In a briefing note, analyst Philip Carse, head of telecoms at IS Research,
said: 'Mark Howling sees enormous potential in the mid-market space for converged IT and comms solutions, focused on 50-500 user companies that are too small to attract the attention of the major players but large enough to demand converged products and to consider outsourcing, particularly in an increasingly hosted world.'
He added: 'His aim is to build Lumison into a £100m annual revenue company, through both organic growth and acquisition, and he has several potential acquisitions in the pipeline, some bigger than Lumison.'
However, Carse warned: 'Buying companies will probably be the easy bit; the main challenge will be to successfully integrate potentially larger acquisitions into Lumison¹s relatively small base.'