Logicalis Acquires 2e2's European Operations at a Cost of £21 Million
IT Services Provider Logicalis Acquires 2e2's European Operations for £21 Million
In a significant move towards European expansion, IT services provider Logicalis has agreed to acquire the European operations of bankrupt rival 2e2, excluding the UK division, for a sum of €24 million (£21 million). The acquisition, expected to be completed in the third quarter of 2023, will add approximately 480 employees to Logicalis's workforce and increase its annual revenues by around £100 million, bringing its total to £800 million.
Following a customer's decision to move its contract to Logicalis, the company will take on around 100 of 2e2's UK employees. However, the UK division will not be part of the acquisition. Instead, Logicalis will continue to operate 2e2's Netherlands division as a service management consultancy.
The acquisition of 2e2's European operations will see Logicalis implement its standardized services platform in 2e2's Spanish and Irish divisions, while the Spanish business will be a strategic move to strengthen relationships with multinational clients in Latin America. The management of the Spanish and Italian divisions that Logicalis did not acquire are familiar to Logicalis.
In a separate announcement, O2 has taken over 2e2's share of their joint IT services venture, O2 Unify, and will employ 107 of 2e2's UK employees. The exact rationale and detailed implications of the acquisition remain uncertain, as the financial terms beyond the acquisition price were not disclosed.
Logicalis CEO Ian Cook stated that the acquisition aims to grow the European presence and augment solutions and services capabilities. The acquisition is considered a significant step in Logicalis's European expansion strategy.
The acquisition of 2e2's European operations is expected to result in continuity of service for the affected divisions, possible rebranding, and access to broader resources and markets. However, the exact details and timeline for these changes are yet to be announced.
As the acquisition progresses, updates and official statements will provide more clarity on the implications for both Logicalis and the acquired divisions. If needed, I can help monitor forthcoming announcements or advise on where to look for verified updates.
The acquisition of 2e2's European operations by Logicalis marks a strategic move in the business sector, integrating technology solutions and bolstering finance by adding approximately 480 employees and increasing annual revenues. Post-acquisition, Logicalis will implement standardized services in various divisions, such as Spain and Ireland, to expand relationships with international clients.
The acquisition also demonstrates Logicalis's commitment to fortifying its European presence and diversifying its offerings in the field of technology, aligning with its previously announced expansion strategy. As the deal progresses, further details regarding service continuity, rebranding, and greater access to resources and markets will be revealed.