Aberdeen tech firm Internet for Business (IFB) has been acquired out of administration, saving all 15 jobs.
The 30-year-old IT firm is now part of Converged Communication Solutions also based in the city.
The deal, for an undisclosed sum, comes after Michael Reid, from insolvency company MHA, was appointed last week and brought in to manage the “detailed” process.
It brings the group headcount to 63 and combined turnover of close to £10 million.
IFB ‘vitally important’ sale
Mr Reid said IFB had “struggled to make a profit in the competitive arena of internet service provision”.
He said: “This is the culmination of a five-month period of the board actively marketing the business for sale.
“Because of the company’s liability position, the arm’s length transaction took the form of a pre-packaged sale, which was formally signed on February 20.
“All employees have transferred to the buyer, who has accepted responsibility for looking after the extensive customer base.
“The sale was vitally important to ensure the ongoing and uninterrupted business activity of all customers.
“The financial information available reflects that Internet for Business struggled to make a profit in the competitive arena of internet service provision.
“This deal is positive in that it preserves the services of a long-standing Aberdeen company.”
Deal ‘expands’ market share
IFB has built a reputation for delivering connectivity and IT solutions.
Converged has grown organically and through acquisitions, to become a managed security services provider, with a broader portfolio of connectivity, telephony, IT and cyber security services.
Neil Christie, Converged chief technical officer, said: “This acquisition is a natural fit, uniting two local businesses with a shared passion for using digital technology to drive business success.
“IFB’s expertise in providing connectivity solutions perfectly complements our enhanced business offering, meaning customers will benefit from an even greater range of services.
“Additionally, this move expands our market share and brings our combined turnover closer to £10 million.”
All 15 IFB employees will join the Converged team at Spires Business Centre in Bucksburn.
Graeme Gordon, IFB chief executive, said: “Co-founded by chairman, John Michie, IFB has been at the forefront of delivering innovative connectivity and IT solutions to businesses for nearly three decades.
“Joining forces with Converged allows us to take our service offering to the next level, giving our customers access to an even broader portfolio of solutions.”
Conversation