THE business founded by Sage co-founder Graham Wylie, which has bought more than 20 companies in six years, is poised to make further acquisitions.
And Newcastle-based Technology Services Group, which provides IT support to small companies through a UK-wide network, says it is now on track to take on at least 100 professionals over the next five years. The company has improved efficiency, cut around 70jobs in the last three years, and says it is now in shape to double turnover to £70m as it pushes ahead with expansion plans.
TSG quickly established a national presence with a string of acquisitions in its first four years of business but had reined in its buying spree as the economy slowed.
But chief executive David Stonehouse said the company is now in “detailed, serious discussions” with two or three companies which will help to fuel its growth.
“We are now looking seriously at acquisitions. We have picked up a few bits of businesses in the last couple of years but we can now go ahead in earnest. Our acquisition strategy is to strengthen ourselves in areas were we have not got a presence or credibility. The South West and the Midlands are stronger than the South where there is an enormous market which needs building. The next six months we hope to move forward on another couple of acquisitions.”
The company says it hopes to create more than 100 jobs at its Gosforth headquarters and Gateshead offices as it expands. It has received encouragement to grow its business on Tyneside from regional development agency One North East with a £500,000 grant.
The investment will allow the company to significantly expand its team of sales and product specialists as well as recruit development staff to expand the current portfolio of services and products offered to new and existing customers.
One North East Director of Business and Industry, Ian Williams, said: “Becoming IT savvy is vital to succeed in the current economic climate, so I am pleased One North East has been able to support this important project.
“This service could bring wider economic benefits across the region. The market for IT support for SMEs is still in its infancy with many small businesses only recently realising the benefits IT can offer. As a result, TSG is focusing attention on tailoring a service for SMEs”