Bracknell-based MSP A&O IT Group, which has been at the forefront of IT services for over 50 years, has set an ambitious target to grow its revenue from 36 million to 100 million within the next three years, as outlined by chairman Rod Moore (pictured).
"We doubled in size organically between 2018 & 2020 and between 2021 & 2023 and our aim to do the same again is clear. Achieving growth from 36 to 100 million organically is challenging. This is where a strategic acquisition comes into play," Moore articulates, highlighting the company's roadmap for the future.
The journey thus far for A&O IT Group has been marked by impressive organic growth, doubling in size from 10 to 20 million between 2018 and 2020, and yet again from 20 to 36 million between 2021 and 2024.
"The growth you're seeing is almost entirely organic. It's about our market and our industry focus," Moore states with pride, spotlighting the group's adeptness at achieving significant growth without leaning too heavily on acquisitions.
"The growth has been primarily driven by our large Indian customers, experiencing growth rates of between 20 and 30% per annum," Moore adds. "Engagement with these rapidly growing Indian customers almost ensures our 100% growth. They're fantastic organisations to work with, highly entrepreneurial, and massively ambitious about winning new business.”
Moore's entrepreneurial foresight and adaptive leadership have been instrumental in navigating the group from its early days as a courier business to becoming a powerhouse in IT services. Reflecting on the transformation, Moore shares, "I set up a business in IT services back in the 1980s... and as a result, I really admire what technology can do."
This adaptability and willingness to embrace change have been central to A&O IT Group's success. “Today, we currently employ around 600 people worldwide and have a network of 208 global partners, positioning us, by European business standards, as a large company. To be classified as a large company, one needs a revenue exceeding €37 million, a threshold we surpass.
“We work as an infrastructure outsource support partner, and a cybersecurity consultancy to six of the largest infrastructure outsourcers globally. If you took the top 12, we're probably in with half of them, including organisations like HCL, Cognizant, Wipro, NTT. The collaboration extends to renowned companies like HP, where A&O IT Group engages in lifecycle asset management and printer management.”
M&A activity
Moore emphasises the strategic importance of acquisitions for A&O IT Group, noting, "We have made acquisitions, integral to our strategy," highlighting the significance of specific acquisitions such as SBS, recommended by Fujitsu, Corsaire Consulting, and a notable German acquisition, as key to “expanding and enhancing the company's service range and expertise.”
The company’s subsidiaries extend across several countries including the Nordics, Germany, France, Switzerland, Italy, Abu Dhabi, and America, under the umbrella of the A&O IT Group, with IT services as its primary UK-based trading entity.
“In Germany, we have a business capable of growing at 10 million annually every three to five years. We find ourselves in a phase where the marketplace is undergoing consolidation, presenting us with opportunities for further consolidation. My goal is to leverage this moment not only to continue our organic growth but also to pursue an acquisition and then effectively consolidate that acquisition."
In pursuit of its ambitious 100 million revenue target, the company is considering an acquisition in the US. "The US would be my preference," Moore asserts but acknowledges that "it is an incredibly difficult market to penetrate" due to the complexities of establishing a business across multiple states. Despite this, Moore admits, "It will probably be difficult to do this year," given the lengthy process.
Reflecting on past opportunities, he said: “Earlier this year, I had a discussion around the potential of a US-based acquisition for 2025. There was a target we had in mind in 2022. Unfortunately, by the time arrangements were in place and I had secured the private equity support, the target had sadly gone bust.”
The company is on the cusp of finalising a strategic acquisition within the UK, anticipated to complete within the year. He highlights the strategic benefits, stating it "helps complement our supplementary offerings" and "presents us with a revenue growth opportunity" among existing clients while also “attracting new customers through the direct channel.”
Customer alignment
For MSPs seeking growth, he emphasises the significance of customer alignment and due diligence in pursuing acquisitions, advising, "Confirm exactly what their revenue is, and where it's coming from... it's all interconnected," he highlights.
“I don’t believe there's any evidence that indicates our strategy is incorrect,” he adds. “It is good to proceed with an acquisition with the blessing of your customers'. Undertake it with complete recognition from your customers. This way, you secure their support and insights in advance, as they will hopefully contribute to making it successful.”
