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Logicalis Group Acquires IBM Premier Partner TBC

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Increases revenues in the UK to GBP125 million

Logicalis Group announced today that it has acquired TBC, an IBM Premier partner and supplier of advanced computing infrastructure and managed service solutions.  TBC’s offerings are built mainly around the Unix server range, database applications and IBM middleware.

Founded in 1984 and with annual revenues of nearly £30 million, TBC is a privately-held company, having undergone an IBM-funded management buy-out in 1999.  TBC is based in Croydon, UK.

TBC is one of the few organisations in the UK able to deliver end-to-end solutions based around IBM’s eServer platform together with a wide variety of support and managed services.  The company was rated one of the top partners in IBM’s 2004 Business Partner scorecard review. 

The transaction is the latest of a series of deals concluded as Logicalis continues its strategy of both organic growth and acquisition to augment its offering and add to the skills of its UK business.  TBC will become part of Logicalis Computing Solutions under the leadership of managing director, Steve Ellis.

Broad range of blue chip and mid-market customers
TBC is a recognised specialist in IBM pSeries, and other eServer products, as well as IBM’s high-end storage solutions.  TBC is also one of the few IBM business partners who offer a true managed services portfolio that is increasingly delivering long term value for its customers.

TBC serves a broad range of blue-chip and mid market customers in the retail, distribution, telecoms, media and entertainment, education, financial services and other markets.  These include: Abbey; Bank of America; Ben Sherman; B&Q; BOC; Cable & Wireless; Debenhams; Friends Reunited; John Lewis; KPMG; Norwich Union; RAC Motoring Services; Reed Elsevier; Saga; Shell; Unichem and the Universities of Cambridge, London, Oxford and Warwick.

As well as IBM, its partners include: Oracle; Business Objects; VMware; SuSe Linux; SteelEye; and Abrevity.

TBC is the first Business Partner in the UK to offer IBM’s `Deep Computing: Capacity on Demand` data centre resources and is one of only four IT solutions providers in the UK to spearhead the major IBM/SAP alliance; the Partner Boost programme.  It has one of the largest groups of experienced AIX support engineers in the UK outside of IBM and also provides support for the Microsoft Windows, Redhat and Solaris operating systems.

Strengthens UK operations
The acquisition of TBC significantly strengthens Logicalis Europe’s key UK operations and enhances its IBM-based business, and reinforces Logicalis’ significant investment in managed service offerings, emphasises Logicalis Group CEO, Jens Montanana.

“This acquisition also enables us to take another big step forward in building an organisation that offers not only networking but also the full spectrum of enterprise computing and storage solutions.  Crucially it will add scale to the Logicalis UK business, and significant weight to our managed services operations, propelling us towards our goal of generating annualised revenues in the UK of over £150 million in the next 18 months.  In the UK, our end-to-end capability with IBM products and solutions, will now match those of the US, allowing us to realise further synergies within the group.”

The deal builds on Logicalis’ March 2005 acquisition of UK£30million turnover Notability which has already positioned Logicalis Group as a strategic IBM Partner in both the UK and US markets.  In August 2005 Logicalis also extended its HP server and storage capability with the acquisition of Hawke, a UK£15 million turnover HP Elite Partner.

Ian Cook, CEO of Logicalis’ European operations says: “This latest move is part of a strategy, whereby Logicalis intends to become a dominant supplier in its sector - delivering secure, converged computing and communications infrastructure and services for ambitious and innovative organisations.

“The acquisition of TBC, which complements the Notability and Hawke businesses, will allow Logicalis Group’s capabilities to more than meet that of Computacenter and, in terms of enterprise computing reseller revenues, to overhaul Morse and SCC.”

Seamless integration
Cook continues: “The acquisition of TBC means that in just six months, Logicalis UK has acquired three new operations.  The first two of which have already integrated seamlessly into our UK operation to provide a compelling computing capability in both IBM and HP server solutions to complement our existing networking heritage.

“And with this latest acquisition, our managed services capability now underpins the whole portfolio with full network and operating system support, remote and hosted systems monitoring, and network, server and applications management.”

Jeremy Willson, TBC’s managing director, adds: “TBC’s management team is very excited at the prospect of being part of the Logicalis Group.  Together, the combined companies will offer a powerhouse of IBM skills and solutions that will further accelerate Logicalis’ growth, by providing inroads into new and incremental business, against the background of rapidly growing demand for converged infrastructures and managed services, where IBM server and storage skills and expertise really count.”

- Ends -

NOTES TO EDITORS

About Logicalis
Logicalis is an international provider of high-performance IT integration solutions.  The Logicalis Group employs 1000 people worldwide, including highly-trained service specialists who specify, design, deploy and manage IT infrastructure to meet the needs of over 5,000 corporate and public sector customers.  Logicalis maintains strong partnerships with technology leaders such as IBM, HP and Cisco.

In addition, Logicalis in the UK has achieved independent triple certification for its integrated management system supporting computing and communications solutions, information security and IT service management offerings: ISO 9001/2000; BS7799 and BS15000 respectively.

The Logicalis Group is a division of Datatec Limited, a $3 billion revenue business listed on the Johannesburg Stock Exchange.  With its international headquarters in the UK, Logicalis’ global revenue exceeds $500 million from operations in the U.S., UK, Germany, and South America.  For more information, visit www.uk.logicalis.com.

About TBC
Headquartered in Croydon, UK, TBC provides a range of IT products and services that support medium to very-large enterprises in the achievement of their IT objectives and strategies.

Founded in 1984 as an IBM Business Partner, TBC operated first as a PC reseller but soon began delivering IT infrastructure and business-critical services and solutions in areas of increasing complexity.  Over this period, the company’s reputation grew, as did its list of prestigious blue-chip clients.

A successful management buy-out – funded by IBM – took place in 1999, followed by continued growth and development of the business, matched with expansion of TBC’s blue-chip client base and growing accreditation.

Today, TBC is known and respected for its integrity, commercial awareness and depth of technical skills.  The company is a successful, privately-owned enterprise and enjoys ever-deepening relationships with its highly-valued clients.