The island’s appetite for mergers and acquisitions in the business world apparently remains as strong as ever.
Business News recently reported growth in buy-ups and linking-up deals.
Manx Telecom is itself in the middle of being sold to an investment firm in a £255m deal.
Now it has emerged that the latest purchase involves Manx Telecom buying Synapse360, an IT infrastructure and managed services provider which operates in both the Isle of Man and the UK.
Both sides in the latest deal are anticipating the move, which brings together the telecoms provider and a B2B (business to business) managed services provider, will enhance the choice available to island-based customers.
And the parties concerned claim it is also hoped it will further boost the island’s reputation as a centre of excellence for IT, telecoms and so-called cloud-based services, making it even more attractive to inward investors.
Synapse360 is privately owned, was established in 1999 and currently employs just under 40 staff based in the island and Manchester.
The island office is at Inspiration House, Carrs Lane, Tromode.
The company will continue to operate under the Synapse360 brand and under the direction of its existing management team, including founding managing director, Colin Sheard.
Talking about the deal with Synapse360, Manx Telecom chief executive Gary Lamb said: ‘This acquisition makes sense from every angle.
‘The ”fit” between both companies is an excellent one, each having complementary skills and expertise, plus a shared vision of the future.
‘It also comes at the right time as we both look for continued growth in the fast-developing B2B managed services sector in the UK and on the Isle of Man.
‘Synapse360 specialises in IT-oriented managed and cloud based services and this, when allied to Manx Telecom’s considerable capabilities in traditional telecommunications, data centre operations and network-oriented managed services, will perfectly position both companies to take advantage of areas of undoubted growth for the future.’
While Synapse360 will continue to operate as an independent company, it’s anticipated that, where appropriate, the two companies will share skills and expertise in order to strengthen each other’s offering in crucial areas of potential growth for both businesses.
Synapse360 managing director, Colin Sheard, said: ‘I’m delighted that Synapse360 is joining the wider Manx Telecom group.
‘Since its foundation some 20 years ago Synapse360 has grown organically, gradually adding to our skills and expertise and growing our customer base, and I’m convinced that this is the natural and very positive next stage in our development.
‘Manx Telecom’s ownership will underpin our ability to provide our current range of products and services, and in the long run the backing of a larger entity such as Manx Telecom will provide capital and other resources which will enable Synapse360 to widen its products and services portfolio, giving our customers both on the island and in the UK even more choice.’
Meanwhile the deal in which Manx Telecom is set to be sold is expected to be completed in early May.
The telecoms company announced last month it has received and recommended to shareholders an offer from investment firm Basalt Infrastructure Partners II GP Ltd.
The value of the acquisition is about £255.9m. Basalt, which was formerly part of UK-based contractor Balfour Beatty, is an infrastructure investment firm focusing on investments in utilities, energy and transport.
Its investments include Wightlink, the Isle of Wight ferry operator, which has been the recent subject of a bidding war by private equity firms.
Figures from Appleby revealed the Isle of Man, specifically, recorded 43 deals last year. There are indications this year is shaping up for more mergers and acquisitions. They include Canaccord Genuity’s acquisition of the private clients business of Thomas Miller Investment.
Source: IOM Today