Bytes expands UK footprint with Phoenix Software buy

Bytes has acquired Phoenix Software in a move that will give the channel player more UK coverage.

The decision by Bytes to pick up Phoenix, which has an annual turnover in the region of £130m, will give it a large slice of action in the North of England as well as ramping up its own revenues to around the £400m mark.

Phoenix has been operating out of York for the past 27 years and will give the largely Southern Bytes a springboard to increase revenues in that area.

There are also ambitions to use the public sector pedigree of Phoenix to bolster activities in that vertical.

“The acquisition comes at an opportune time for Bytes UK as it looks to expand much further into the public sector, from where Phoenix derives a significant percentage of its revenue," said Neil Murphy, Group MD, Bytes UK.

"This now makes Bytes UK Microsoft’s largest UK partner, whilst also opening the door to relationships with other global vendors such as EMC and Dell and deepening relationships with VMWare, Checkpoint, Citrix, Mimecast and Sophos to name a few," he added.

Murphy added that there were no plans for job losses and it hoped that the Phoenix staff would welcome the chance to be part of a larger business, where they could develop their skills and careers.

In response, Sam Mudd, Phoenix Software managing director, said that the combination of the two firms would benefit both its staff and customers.

“This is extremely positive news and our announcement has come at the right time for our company and staff, in terms of navigating the fast-changing world of IT in which we operate and the channel consolidation that is taking place. We see plenty of synergies and are excited about working with new complementary offerings, and taking our joint businesses forward with ambitious growth plans across all our vertical sectors," he said.