MSP CloudClevr has set an ambitious target following its recent acquisition of Twisted Fish IT last month, aiming to grow its revenue by more than 20% annually across the entire group over the next 2-3 years, according to CEO Steve Harris (pictured).
Launched in 2022 with a £50 million investment from Rigby Technology Investments (RTI), a specialist arm of Rigby Group PLC, the company has rapidly expanded by acquiring Bamboo Technology Group, NGC Networks, 4Sight Communications, and now, Twisted Fish IT.
This marks the fourth M&A deal for the RTI-backed firm, boosting its workforce to 180 employees, enhancing Microsoft IT capabilities, and increasing run-rate revenue by over £30 million.
“We have a two-pronged strategy that prioritises both organic growth and acquisition. We want to be growing in excess of 20% in the next few years... and that's organic," Harris says. “This acquisition is also crucial for CloudClevr to bolster its technical competencies, particularly in Microsoft technologies, which are central to the group's strategic vision.”
He emphasised the strategic enhancement of Twisted Fish IT's capabilities, stating, "Twisted Fish is a direct Microsoft CSP partner with great skills around modern work and infrastructure with Azure," Harris explains. “Microsoft has always been a key area for cloudClevr as a group. We aim to establish a solid alignment and proficiency with Microsoft.
“Whether it's Microsoft's traditional IT pillars or Microsoft Teams, we foresee Microsoft remaining highly relevant for years to come. Our job is to invest further in them [Twisted Fish IT] so they can expand their technology leadership and capabilities.
“They've also got some very strong skills in networking and in particular around Cisco Meraki. This investment enables them to do more of what they are already doing. We're effectively giving them a channel to market because as a group we have around 2000 customers."
Strategic differentiation
This acquisition, Harris asserts, is a strategic part of CloudClevr’s broader plan to provide differentiated business value to its customers by deepening technical expertise.
"I think we've got a really significant differentiated advantage compared to many other players. The MSP market is quite crowded and tends to be focused on single technologies, he says. “You often see a lot of mobile resellers, comms resellers… that might have a broad portfolio but lack deep technology leadership in their specific technology domains, or what we call practices.
“I believe there's a massive opportunity for us to provide what I would call differentiated business value to our customers, with deep knowledge across all those technology areas. Our focus now shifts to scaling this strength and demonstrating its relevance to both our current and prospective clients."
He further highlights the specialised strengths of his company's recent acquisitions, noting their impact across diverse vertical markets. "With Twisted Fish, we've gained significant expertise in financial services and compliance, while Bamboo enhances our capabilities in the care and education sectors," Harris explains.
He also points out the strengths of NGC’s notable presence in the public sector and hospitality. "Through these acquisitions, we've achieved a robust spread of vertical focus, deeply rooted in specific skills," Harris adds.
He emphasises that if it makes any future acquisitions, CloudClevr will focus on businesses that can enhance its customer base, rather than just expanding into new vertical markets.
"Our acquisitions have not just been about vertical focus; they are deeply skilled. Moving forward, if we do make more acquisitions, it will be based on the customer base they have, rather than their industry vertical.”
Navigating integration challenges
However, merging separate entities can be quite a complex journey. Harris outlines the substantial challenges of integrating multiple acquisitions, especially when aligning disparate systems and corporate cultures.
"We've acquired four different companies so far, and while our cultures and values are well aligned, we face significant hurdles in system integration," Harris explains. "We're all on different systems and different Microsoft 365 domains."
Despite these challenges, Harris is optimistic about the future, highlighting strategic investments in new technologies. "We're investing in state-of-the-art CRM, ERP, HR, and accounting systems, building these capabilities in parallel while keeping our businesses operational," he says.
This dual-track strategy, Harris believes, will eventually help unite all entities under a single platform. “We've been working behind the scenes to discern the qualities and capabilities that would define CloudClevr as the finished article.
“We’re currently in the process of selecting the platforms we will move forward with. These are being built in the background, and we will gradually begin to migrate and integrate all the businesses together.”
