Core Technology Systems acquires Velocity IT for skills, teases potential future buyouts
The acquisition adds around 16 people to the group.
Core Technology Systems, an MSP in the UK IT channel, has acquired Velocity IT, a specialist in automation technology.
This acquisition advances the MSP's strategy to drive growth and innovation, aligning with its objective to exceed its £15m revenue target in 2024, alongside strengthening Core's portfolio with broadened Al and automation capabilities.
Financial terms of the deal were not disclosed.
With 16 UK-based employees in its ranks, Milton Keynes-based Velocity is known for its expertise in business process automation (BA), robotic process automation (RPA) and artificial intelligence.
"Velocity IT is a perfect fit for Core, not just in terms of technology and expertise, but also in culture and values," said Conor Callanan, CEO of Core Technology Systems (pictured).
"This acquisition is a growth story. It's about bringing together two like-minded companies that share a vision for innovation and excellence. We are excited to welcome Arno and his team to the Core family and to be able to expand our offering and value provided to our customers."
The acquisition is part of Core's longer-term growth strategy. In the near term, the MSP will seek to integrate the two businesses, with potential further acquisitions in 2025 and beyond.
It is also understood that Core is enhancing its capabilities in preparation for a potential sale to an external buyer later down the line. To this end, the solution provider is looking at organic growth, as well as buyouts.
This acquisition follows its purchase of Scotland-based Microsoft Gold partner, CompanyNet.
Led by CEO, Arno van Rooyen, Velocity works across a variety of sectors including healthcare, manufacturing, insurance, and local and regional government. Velocity IT's leadership in automation will complement Core's existing services, adding significant value to the company's portfolio and offering new opportunities for innovation, particularly in Al and application development.
The buyout also augments Core's capabilities in Dynamics CRM, and brings additional skills in Power BI, AI, Power Apps and low/no code technologies, strengthening Core's position and expanding its partner ecosystem.
Arno van Rooyen will remain a key stakeholder in the business, leading the Velocity iT team and ensuring continuity in service excellence. "Joining forces with Core represents an incredible opportunity for growth and expansion," said Arno.
"We are thrilled to become part of a company that shares our values as well as our passion for technology and innovation."
The corporate team at Farley's Solicitors advised Core on the acquisition of Velocity IT. Advice on financial aspects of the deal were provided by Thincats.
Core's buyout of Velocity is the latest of almost 30 solution provider acquisitions covered by CRN since the beginning of the year. In a recent feature, we covered the acquisition dos and don'ts of the likes of SCC, Advania and Aspire Technology Solutions.