Academia will follow up its purchase of Smartdesc by making further acquisitions that enable it to “do more with the same customer base”.
That’s the message of its MD Mark McCormack, who revealed the Apple and Adobe partner is looking to expand services to 50% of its business via organic growth and M&A.
Academia last October hinted it was closing in on a large acquisition as it purchased £9m-revenue MSP Smartdesc.
But 11 months on, the London-based outfit has had a change of heart as it prioritises complementary skills over scale.
“We did have one [scale target] we were talking to, and in fact we were quite deep in due diligence with that particular company,” McCormack told IT Channel Oxygen.
“It didn’t work out, and actually we realised it was probably for the best because we want more of the things we don’t have, rather than more of things we do have.”
Setting its sights on 50% services
In its year to 30 June 2025, managed services generated around 30% of Academia’s £138m top line after growing 44%, McCormack said (software grew by around 15%, while hardware was flat).
“We’d love to get to about 50%,” he said.
Without Smardesc – which contributed “five or six months” to the numbers – managed services growth was still in the double digits, McCormack added.
“The Smartdesc acquisition was good for us, because it gives us more breadth and depth outside our Apple services portfolio in cyber, Intune and generally Microsoft as a whole – but there are still gaps,” he said.
“We’re not looking to go out and get loads of new customers, but to do more with the same customer base.
“In doing that, we’re noticing gaps – so the next acquisition will be in one of those gaps.”
This includes infrastructure and networking as well as cyber services, where Academia may look to create or buy a SOC, McCormack said.
Harman happy after five years
McCormack’s comments come almost exactly five years after industry veteran Andrew Harman acquired Academia through his Strive Capital vehicle.
Although Academia is still “famous” for its Adobe and Apple prowess, the Harman era has seen it build more services that “sit around the box and beyond”, McCormack said.
Academia also continues to diversify beyond its education stronghold and into the wider public sector and midmarket, he added.
With a number of peers including CAE Technologie Services, CCS Media, Servium and Total Computers all recently selling up, does Harman have an exit plan?
“He’s certainly under no timeframe or pressure to leave or sell up as far as I’m aware, and we’re the same. We’re very focused on carrying on as we are and keeping that growth story going,” McCormack responded.
After a two-year hiatus, Academia is this year once again using the government levy to bring a crop of around 10 apprentices through the business.
“Because we’re now planning for growth and are going to need more people in different areas, we decided to do it again this year,” McCormack explained.
Doug Woodburn is editor of IT Channel Oxygen
