Microsoft has indicated it is supporting the merger of Genesis Communications and Increase CRM as a combined operation will help drive its hosted software strategy.
Piers Linney, director of Genesis, said that it was already providing hosted services but the acquisition would give it a much bigger slice of the market.
"[The acquisition] dramatically extends our ability to support customers and deliver the value added professional services that our customers are demanding as they increasingly embrace the power of Microsoft Dynamics CRM," he said.
Backing the deal Martin Walker, software+services, UK lead at Microsoft, said that both resellers were gold partners and they supported the development of the hybrid hosted model that the vendor was actively pushing to customers.
"Microsoft is strategically committed to the Software+Services model across its business products suite and is working closely with its partners to take solutions to market," he said.