Bechtle’s UK&I boss has spoken of the need to maintain a “balance” between scale and capability-based M&A following its second regional acquisition in just two weeks.
In what is its sixth UK&I acquisition since 2022, mainland Europe’s largest VAR has snapped up Bespoke XYZ, a £3.5m-revenue AI, data analytics and automation specialist with 52 staff.
The move came just as the Germany-based goliath raised its full-year outlook after announcing its top line boomed 19% year on year to €2.44bn in Q3 (following a similar upgrade from global rival CDW just yesterday).
“We’ve had some good wins together”
Manchester-based Bespoke was one of several partners Bechtle had been working with to serve its clients’ AI needs, UK&I Regional Director James Napp told IT Channel Oxygen.
Bechtle was eager to bring this capability “in house” following the launch of its AI practice in October, Napp explained.
“We’ve been working with Bespoke for about two years, and we’ve had some really good wins together,” Napp said.
“If you go back two years, AI was more embryonic, and so we worked with two or three different partners. We felt like the outcomes and the working relationship we were getting with Bespoke were very, very strong.”
Boasting an offshore delivery team in the Philippines, Bespoke specialises in Microsoft-based AI, data analytics and Power Platform solutions.
The move mirrors Softcat’s acquisition last April of Oakland, an AI consultancy with which it had also previously partnered.
Just two weeks ago, Bechtle pounced on €30m-revenue Irish VAR ITQuotes, following on from its UK acquisitions of ACS Systems (2022), Tangible Benefit (2023), Qolcom and PLM software developer DriveWorks (2024).
It now employs 424 UK staff across locations in London, Chippenham, Manchester, Northampton and Newbury (with a further 64 PLM specialists based in Thelwall near Manchester).
“More of a capability acquisition”
Napp characterised Bespoke XYZ – whose founders and majority shareholders Sam Bright and Jordan Brookes will remain with the business – as a “capability” rather than “scale” acquisition, stressing that his aim is to keep a balance between the two.
“Our acquisition strategy is one of scale and/or capability,” he said.
“We’re buying capability to fill in gaps or enhance our ability to deliver our own solutions in house. This acquisition is more of a capability acquisition, and then obviously we’ve done some volume ones, so we’re trying to keep the balance between scale and capability in good shape.”
Asked about the rationale for the deal, Napp said Bechtle needed to be “front and centre” of the shift towards consulting-led discussions among its clients.
“Customers want to know how to employ AI within their business,” he said.
“It’s about looking at readiness for AI. And then it’s about making sure we can target the areas where an AI-enabled approach can have the biggest impact on a business and its customers, and then that it’s properly governed and properly cost controlled, so that it’s a joined-up approach, and there’s not an AI sprawl going on.
“A lot of customers are looking for guidance on how to do that.”
Doug Woodburn is editor of IT Channel Oxygen
