Trustmarque and Ultima Business Solutions announced, towards the end of last month, their intention to merge, creating what the companies describe as “one of the UK’s largest IT channel players” with a combined Gross Invoiced Income (GII) expected to reach £1bn. Simon Williams, currently CEO of Trustmarque, will lead the merged entity, with Jamie Beaumont from Ultima taking the CFO role.
Trustmarque, headquartered in York with 550+ employees, has operated as a technology services partner since 1987. Following its acquisition by US private equity firm One Equity Partners (OEP) in 2022, the company acquired Livingstone in 2023, adding managed services capabilities around Microsoft licensing optimisation. Ultima Business Solutions, based in Reading with 450+ employees, was founded in 1990 and became majority-owned by Apse Capital in 2019. The company provides managed services, professional services and IT infrastructure solutions, with an in-house automation unit (Ultima Labs) focused on AI-enabled operations optimisation.
The £1bn reality check
The £1bn figure in the announcement refers to Gross Invoiced Income (GII) rather than net revenue and includes the qualifier “expected to reach” without any specified timeframe. This target aligns with OEP’s stated ambition to position Trustmarque amongst the Top 5 UK Value-Added Resellers by gross revenue.
However, for a business like Trustmarque heavily weighted toward Microsoft licensing pass-through, GII captures total transaction value, including low-margin software sales, which materially overstates the underlying business scale. This is the same dynamic that creates the massive discrepancy between GII and net revenue for volume Microsoft licensing specialists like Bytes.
Looking at net revenue provides a more accurate picture. Trustmarque’s FY23 net revenue stood at £147m (from £609m turnover). Ultima’s accounts for the year ending March 2024 show revenue of £73m with 403 employees. The combined net revenue, therefore, sits around £220m, placing the merged entity well below the UK’s established IT services leaders.
Why the business model comparison matters
The revenue per employee disparity is instructive: Trustmarque generates approximately £267k per employee compared to Ultima’s £181k, likely reflecting the difference between professional services-led versus managed services-led models. Both businesses claim roughly 60/40 product-to-services splits, but Trustmarque skews towards professional services delivery, whilst Ultima’s strength lies in managed services.
The operational complementarity appears logical: Trustmarque operates a Network Operations Centre (NOC) whilst Ultima runs a Service Desk, and the merger will deliver more balanced public/private sector exposure. Combined headcount exceeds 1,000 employees serving 3,000+ customers.
The full analysis
The more substantive question is whether this combination genuinely accelerates the services transformation both businesses have been pursuing – particularly given the execution challenges that accompany such transitions. TechMarketView’s comprehensive article examines Trustmarque’s services trajectory since its OEP acquisition, assesses Ultima’s own transition experience, including its recent financial performance, and analyses whether the merged entity can execute on services growth while managing the private equity investment timeline. Read the full piece at Trustmarque-Ultima: Assessing the scale claims | TechMarketView
Georgina O'Toole
Georgina O’Toole is Chief Analyst and Partner at analyst and advisory firm TechMarketView
