TSG buys Xperience in bid for national network
May 23 2008 by Peter McCusker, The Journal
A BUSINESS launched by Sage co-founder Graham Wylie is back on the acquisition trail and yesterday revealed plans to nearly double sales to £70m.
Newcastle-based Technology Services Group Ltd (TSG), which provides IT support to SMEs, has grown quickly since it was launched by Mr Wylie in October 2003 in Newcastle with ambitions of establishing a national IT support network .
Yesterday, it announced it had made its 22nd acquisition. It has bought the IT infrastructure business of The Xperience Group giving it a presence in Leicester, Wellingborough, Tamworth and London. Its geographical spread now encompasses 14 offices extending from Aberdeen to Southampton and further acquisitions are planned.
Group business development director Nigel Hudson said: “We are very ambitious and we have the financial resources for further expansion.
“We are looking at further acquisitions this year and there will definitely be more in 2009. There are more businesses we would like to buy in all regions and we are looking to further increase our profile across the UK. If things come together we could see turnover rise from £40m currently, through to £50m, £60m and then on to £70m. We made a lot of acquisitions in the first few years and then we stopped for a while to ensure they were integrated into TSG.”
TSG says it is looking at further purchases in the North East, Scotland and on the Leeds-Manchester corridor. Mr Hudson added: “We have a good business model. It works and we have generated growth. We like to buy established companies. This means we have an established customer and supply network, but it also means we are taking out any potential competition.”
The company is based on the Gosforth Business Park where 110 of its total 450 staff are based.
This business unit of The Xperience Group employs 50 staff and specialises in Pegasus business software and computer networks, serving a diverse customer base of almost 700 firms across the Midlands and the South of England. David Stonehouse, TSG’s chief executive, said: “This is another important acquisition in TSG’s expansion strategy. It further strengthens our position as the leading IT service provider to small and medium sized businesses nationwide with the addition of a significant customer base into the group.”
