Some 12 of QBS Software’s 15 acquisitions to date have been off market, its CEO revealed as the software distributor unveiled its latest purchase.
QBS today confirmed to IT Channel Oxygen that it has acquired EMT, a Riyadh and Dubai-headquartered software VAD representing its sixth purchase in the META [Middle East, Turkey and Africa] region inside 34 months.
The London-based software delivery platform has now snapped up 15 companies since it began its M&A spree in 2018.
Bolstered by its recent acquisition of pan-European VAD Prianto (by far its largest deal to date) QBS’ recurring revenues have grown from zero to €650m in seven years. It ranked 12th in IT Channel Oxygen’s 50 Must-Know UK IT Distributors 2025.
“Famous for buying companies that aren’t for sale”
Talking to IT Channel Oxygen, CEO Dave Stevinson said EMT is typical of QBS’ acquisitions in that the deal was conducted off market.
“It was recommended by one of our mutual vendors,” he said.
“We’re famous for buying companies that aren’t for sale.
“We’re going out to find companies that are as close to my vision of what QBS is intending to become.
“There are only 84 companies in the world who ticked a box of what we want to buy because they meet our requirements, and I’m too impatient to wait for them to come to market.”
QBS has 12 acquisition criteria. To name just two, targets must generate over £1m in profits and sell emerging software and SaaS through intermediaries such as ISVs, VARs and system integrators.
They must also be in a desirable geography, which for now means EMEA.
“At the moment, we’re focusing on filling in the gaps in EMEA and giving our vendors good coverage of the region,” Stevinson explained.
“It’s comfortable for us to be in similar time zones.
“We have long-term plans to take this business global, with huge aspirations to enter the US. We have a team working on that, but that won’t be for the next couple of years. We’re also exploring Asia, but not with the same gusto.”
“The biggest single thing I’ve learned”
QBS now claims to be a $150m-runrate business in META, where it has acquired not only EMT but also Turkish outfits InfoNet and Elmer and South African players Maxtec and Titus (not to mention Prianto’s Turkish subsidiary).
Operating since 1989, cyber-security, ITAM, software asset management and systems integration specialist EMT serves all six Gulf Cooperation Council nations and every one of the seven emirates. Its 40 vendors include Progress Software, Fortra, CyberBIT, Freshworks, Flexera Software, ESET, Matrix42, Coreview and Heimdal.
“I’ve got a lot of grey hairs and scars from these M&As,” Stevinson confided.
‘Every single one takes a little bit longer and costs a little bit more than you’d like it to.
“I would say the biggest single thing I’ve learned is not to economise on lawyers or advisers. Surround yourself with the best you can afford, and that’s what we do quite well.”
After each deal, QBS moves through three workstreams, namely transaction, integration and uplift, Stevinson explained.
“We have a highly structured process, and surround ourselves with best-in-class advisors who understand the process, how we work and who are empowered to bring the accelerated deal cycle with maximum discretion.
“I take incredible pride in our ability to make quick, decisive decisions and behave impeccably through the deal cycle.”
Doug Woodburn is editor of IT Channel Oxygen
