Teksys finds buyers

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Teksys finds buyers

Microscope contributor

The standing of Teksys is looking more secure after private equity backers bought the entire business with the intention of using the less-than-certain economic climate to consolidate.

There were rumblings prior to Christmas that investors were looking to buy the Fleet-based Microsoft LAR but senior management refused to discuss the situation with MicroScope.

However, last week serial entrepreneurs Alan Watkins and Kevin Lewis bought out the current chairman Shaun Frohlich, managing director Simon Ognall and other shareholders for an undisclosed sum.

"With Teksys we see a great foundation to conduct a roll-up in the Microsoft space. It is no secret the reseller community is consolidating so there is clearly an opportunity," said Watkins, the new chairman.

The aim is to ramp managed services aimed at mid-market customers including software asset management (SAM) and despite the credit crunch Watkins believed it will be a good year to buy with money in his pockets and many in the channel looking shaky.

Frohlich remains at Teksys as a director and Ognall as managing director, with Lewis also taking up a director's role. Andy Crawford, sales director and Mark Flynn, technical services director, have left.

The business had been for sale for some time, said Ross Miller, managing director at rival LAR Trustmarque: "It now has a team of investors that can take the business forward."

Jon Atherton, group vice-president at Microsoft distributor Enta Technology, said he envisaged consolidation among certified and registered Microsoft resellers but not Gold partners.

In the year to July 2006, Teksys achieved sales of £37m and profit after tax of £290,000 but this last year had been more difficult and the balance sheet had looked weak, said sources.

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