Intact has acquired its long-standing partner Blue Rock Systems. Based in Southampton, Blue Rock has resold, implemented and supported Intact ERP systems for over 16 years. The acquisition will extend the Dundalk-based ERP vendor’s presence in the UK.
Blue Rock comes with 43 employees and offices in both Southampton and Nottingham. This adds to Intact’s presence in the UK in Warrington and its new HQ in Hemel Hempstead. It now has offices in the North, South and East Midlands.
Justin Lawless, CEO at Intact, commented: “The acquisition of Blue Rock Systems is part of Intact’s strategy to become the leading provider of ERP and business software solutions in the merchant and distribution sector. This important development adds to our strong customer base and involves a team of highly skilled individuals, with deep software industry expertise, who will enhance customer service and support our growth plans.”
The acquisition was funded by Intact profits and cost Intact several million pounds. The exact terms were not disclosed. The deal closed on 14th June. Intact retained all employees of Blue Rock, with the ERP vendor now having 243 employees. In its last financial report for the year ending 31st January 2022, the company had more than £2.6 million in net assets. It grew revenue by 30% with double-digit profit growth during the last financial year.
Founded by Managing Director George Troullis, Sales Director Glen Jewell, and Lance Norton, the company’s Commercial Director, in 2005, Troullis is joining the Intact leadership team. Troullis commented: “The synergy is excellent, and the combined expertise will strongly boost customer resources. This acquisition will see existing and new customers benefit from an expansion of services and improved processes, with an integrated team sharing best practice to ensure we maximise Intact market performance.”
Enterprise Times: What does this mean
This is a sensible move from Intact as it looks to accelerate its growth trajectory. In a single deal, it has increased its presence in the UK. The acquisition will give it a bigger direct customer base and employees that already know its products.
What will be interesting is whether it now looks to make further acquisitions. That is unlikely in the short term without further external funding. However, if it can accelerate growth and build on the foundation and relationships that Blue Rock already has, it might find that funding easier.
This deal should improve its brand awareness in the UK. It will be interesting to see what it can achieve, having instantly grown the organisation by nearly 20%.