Managed service provider Tialis Essential IT has acquired the “profitable partner contracts” from Allvotec, a division of Daisy group, adding an expected £5.7m in revenue in FY23.
Completion of the deal is expected on 31 January, 2023. The acquisition will bring three new channel partners to Tialis, supporting the diversification of Tialis’ partner base.
In addition, 140 staff will transfer from Allvotec to Tialis to “ensure the smooth transfer and execution of the contracts”.
Andy Parker, chairman of Tialis, said: “This is a pivotal moment in the continued recovery and restructure of Tialis. The acquisition of these profitable contracts will further cement our position as a partner of choice for the services we provide.
“Adding around 50% more to the revenues next year, and three new channel partners, will boost profit for Tialis in 2023 and provide longer term opportunities with the new partners.”
The contracts will be acquired for an expected consideration of £2.144m, all in shares in Tialis.
Matthew Riley, the founder and chairman of Daisy Group, will join the board of Tialis as a non-executive director upon completion of the deal.
In November, Tialis renamed itself from IDE Group. Tialis reported its H1 results in September, and posted revenue down from £7.6m to £6.7m. This was after it sold off its IDE Group Connect business to CloudCoCo.
