Dublin-based Version 1 is an IT services player I expect we will be hearing more of over the next few years as it steps on the growth accelerator via acquisition and organic growth.
Today it announced the acquisition of Edinburgh-based enterprise software IT consultancy Rocela Group (for an undisclosed sum). This follows the purchase of the UK business operations of European IT Services Company Tieto Corporation in November 2013, which was the first part of a three year acquisition programme.
Version 1 was founded in 1996 by CEO Justin Keatinge and John Mullen and provides a broad range of IT services, including managed services, with expertise in Oracle and Microsoft. It has grown to 500 employees (100 in the UK) and FY14 revenue is forecast at €62m (£52m). Rocela Group - founded 2001 by CEO Martin Mutch and commercial director Kenneth Wilson - had revenue of €17m (£14m) in FY12, and employs 75 people in the UK, providing services to global banks, FTSE100 companies and pan-European utility organisations, as well as UK public sector and local government organisations.
Version 1 has big ambitions and is aiming to be the first €1bn Irish IT Services company. It appreciates it will take time and is looking at a 10 year timeframe based on 30% growth yoy with half each from acquisitions and organic growth. It does not disclose full results but says it has doubled revenue and profitability “over the past few years”. Ambition is good and this is a good time for smaller European IT services providers, as Avanade and Outbox illustrate, but it needs to take care because too many acquisitions over a short period of time could be a heavy burden for a company the size of Version 1.