Prism Facilitates Sale of velos-IT to Velocity Technology Solutions Inc.
One of the UKs leading ERP application managed services providers has been sold to US cloud applications services company Velocity, in a deal brokered by Cambridge based Prism Corporate Broking.
Headquartered in Glasgow, velos-IT provides Oracle ERP hosting and support services to enterprise customers worldwide. Established in 2004 the business has grown rapidly, employs c100 staff and has an enviable client base of mid to large size corporates.
The four founding directors and shareholders approached IT M&A specialists Prism Corporate Broking to review their options and subsequently engaged them to help market the business. Prism established keen interest from a number of potential trade buyers and private equity investors, including Velocity, the leading the leading cloud-based managed application services provider in North America. Velocity, who had themselves recently been acquired by a leading global Private Equity group, were keen to establish a European foothold.
Synergies between velos-IT and Velocity, not to mention their spookily similar names, coupled with the obvious financial strength gained from their new backer, established Velocity as the preferred bidder. Financial terms of the transaction have not been disclosed.
Peter Watson, managing director of Prism Corporate Broking comments, “From our first meeting with David Smithers, Finance Director at velos-IT, we could see the attractiveness of their well-managed and successful businesses, especially with the long term contractual revenue stream, sought after customer base and clear future potential. We have enjoyed working with velos-IT and are pleased that we have been able to bring this deal to fruition.” David Smithers adds “Peter and the team at Prism were confident from the start that we could achieve our aspirations and have secured a deal value and structure that ticked every box.”
Tom Bruno, CEO of Velocity, comments “Velocity and velos-IT share more than a name. The core values are the same and both have a reputation for technology innovation and customer service,” He adds; “The acquisition of velos-IT furthers our global services footprint and immediately strengthens and expands our Universal Cloud Services offering. We are excited to serve the European market and enthusiastically welcome the entire velos-IT team into the Velocity family.”
Jim McInnes, founder and Managing Director of velos-IT and now Velocity’s General Manager, Europe says, “We are excited by the opportunity to leverage the knowledge and technical expertise of Velocity and velos-IT across the expanse of Universal Cloud Services and extend a compelling offering for our current and future customers. He adds, “In short, joining Velocity further fuels our path toward providing industry-leading application services. We will continue to provide the exceptional level of service that has made velos-IT one of the UK’s fastest-growing IT services companies. And, extend our capabilities both geographically and by offering Velocity’s Universal Cloud Services.”