Acquisitive MSP Redsquid has made two purchases inside a week.
The double swoop – on Computer Security Technology (CTS) and Penstone Communications – propels the comms and IT specialist’s headcount to 82.
Owned by founders Sohin Raithatha and Vince Mignacca, Redsquid in November secured a new lender to “supercharge” its M&A strategy in the shape of ThinCats.
CTS and Penstone mark Redsquid’s fourth and fifth acquisitions in the last 12 months.
Specialising in advanced cyber security solutions, London-based CTS adds 15 staff to Redsquid’s ranks. Redsquid will retain its Liverpool Street HQ as a fifth office alongside its Borehamwood, Aberdeen, Pinewood Studios and Warner Brother Studios bases.
Penstone is more of a telecoms specialist, holding partnerships with Gamma and Mitel. Redsquid said the six-employee outfit would boost its capabilities within UC services as it gets ready for the upcoming PSTN switch off in 2027.
Stuart Thompson, Head of Transitional Capital, of ThinCats, said: “We are delighted to continue our support of Redsquid as Sohin and the team delivers their growth aspirations of becoming a national IT solutions provider. We are excited about what lies ahead for the business and looking forward to playing our part in the future.”
Going with the Flo
Redsquid is not the only MSP turning to lenders rather than private equity to fuel acquisitive growth.
Having only been founded in 2022, Cardiff-based MSP Flotek is aiming to hit £20m revenues by the end of 2025 following an M&A spree backed by Tower Leasing and its own cashflow.
Having already gobbled around a dozen firms, Flotek today announced its latest acquisition in the shape of Simpology.
“This acquisition brings over 50 new managed support customers, plus more than 50 customers under the IT4Hair retail focussed sub-brand, as well as an additional £1m in revenue, taking our total to 120 employees and £17 million in revenue. The acquisition aligns with our vision to continue our market leading growth and provide exceptional IT & Cyber Security support to SME’s across the UK,” Flotek CEO Jay Ball stated.
