£21m secured fallen star 2e2’s managed service operations in Europe, excluding the UK business
Managed service provider Logicalis has bought up the European subsidiaries of 2e2, excluding their UK business which is now in the hands of Daisy Group. The European businesses were bought for €24million (£20.6m).
The deal includes the Spanish and Irish systems integration businesses, operated under the Morse banner, which 2e2 bought for £70 million in 2010; the Channels Islands business, and their IT service management (ITSM) consultancy operation in the Netherlands.
Its Spanish subsidiary is a key vendor partner of IBM, and Logicalis said this would complement many of its multinational clients in Latin America. The Irish operations focus on IBM, NetApp and HP.
In the Channel Islands business was based on Xerox and HP. The combined operations have a turnover of about $150 million (£99m) and earnings before interest, taxes, depreciation, and amortization (EBITDA) profits of more than $8million (£5.3m).
“This acquisition of these four businesses immediately expands Logicalis’ European footprint and enables us to improve our offering to Logicalis’ multinational and Latin American clients,” said Jen Montana, chief executive of Logicalis parent Datatec. He claimed the transaction, paid for by a combination of cash and shares, also “opens service opportunities in new customer markets”.
Separately, Logicalis has employed approximately 70 people from the 2e2 UK operation and assumed some of their respective business. Since January more than 500 employees joined Logicalis when 2e2’s UK operations were put into administration.
Chad Griffin, joint administrator of 2e2 and senior managing director at FTI Consulting, said: “2e2’s international business attracted a lot of buyer interest and traded strongly through a difficult period. We are pleased that we were able to reach a successful transaction for all four businesses with Logicalis.”
In the middle of February, Daisy Group took over 2e2’s data centres in the UK, meaning customers would be able to access servers and data locked inside the Reading and Gateshead facilities.
More news about 2e2 can be found here.