Managed IT and cloud services provider Nasstar PLC (Nasstar) has acquired hosted managed services specialist Modrus. Nasstar, which has headquarters in Telford, Shropshire, United Kingdom, offers a range of services including a dynamic online platform that hosts business apps alongside cloud storage options. The company, which was established in 1998, caters to around 10,000 users through four regional UK offices. Its acquisition of Modrus was reported to have cost the company £13 million.Modrus, which was established in 2004, is a leading managed IT services and telecoms provider catering predominantly to SMEs. Its “comprehensive cloud service” includes hosted desktop, managed exchange and managed telephony services. The company generates £6.1 million in revenue with 86% contracted recurring revenue. Alongside UK headquarters in Bournemouth, United Kingdom, the company has a presence in New Zealand. The acquisition is fully in line with Nasstar’s policy of expansion through “organic growth supported by selective acquisitions”. It adds 140 managed service clients to Nasstar's books.
"Since the end of 2013 we have taken Nasstar PLC from a £2.5 million turnover loss making business into a profitable Group (adjusted) with a market cap of almost £50 million and the Modrus acquisition represents a significant step in our acquisition strategy to increase our 'go to market' verticals and further diversify our customer base,” explained Nasstar’s Chief Executive Officer, Nigel Redwood. “Modrus introduces three new target market verticals to Nasstar's product suite -- media, property services and ISVs whilst adding further penetration in financial services and recruitment. This acquisition represents a highly complementary fit with obvious synergies within licensing costs and data centre consolidation. We are delighted that our placing to raise £13.3 million has been well supported by both new and existing institutional investors."
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