PE-backed Babble acquires Newcastle-based Activ Technology

Comms company Babble, which is backed by private equity firm Graphite Capital, has acquired Newcastle-based managed services provider (MSP) Activ Technology. The acquisition is Babble’s sixth in the last year, as well as its second since it was backed by Graphite in November 2020.

Activ Technology is a partner firm of Microsoft, Mitel and Citrix and provides managed IT and telephone services to SMEs and companies from the education sector. Babble says that the acquisition is its largest in the last 12 months and will help it expand its national presence.

Previously, Babble Chief Executive Matt Parker said his firm could target as many as ten acquisitions in 2021. Commenting on the Activ Technology deal, Parker said: "We are delighted to have completed the purchase of Activ, which marks a fantastic opportunity for us. The people and talent within Activ will allow us to better achieve our ambitions.”

"This year we expect to complete more acquisitions as we continue to seek innovative businesses that think the same way as us, in order to both grow the capabilities we can provide to our customers and fill our business with the best people in the industry."

Activ Technology MD Ian Gillespie, meanwhile, said: "Joining Babble is an exciting step for Activ. They’re incredibly ambitious, and will continue to provide the best technology and expertise to our customers across the UK."

After backing Babble’s management buyout (MBO) from LDC in November 2020, Graphite Capital said it was looking to help the firm “strengthen further its leading position as a provider of ‘next-generation’ communications and collaboration solutions”.

At the time, Graphite said: “Graphite is supporting Babble to accelerate its organic growth by winning new clients and cross-selling services to its expanding customer base. Graphite will also help drive the acquisition programme. The company has a successful track record of acquiring smaller providers, with its structured integration approach delivering attractive synergies.”

In its most recent financial reports, for the year ended November 30 2019, Babble reported pre-tax profits of £1.46 million on annual turnover of £12.6 million, this was up from profit of £590,062 on £7.7 million in turnover the year prior.


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