The Story Behind the Merger of Mirus IT and IT Lab
In an interview with CEO Peter Sweetbaum and CFO Andrew Insley, Megabutye explored the rationale behind the deal and what it means to IT Lab's growing client base.
A Growth Trajectory
IT Lab's Corporate Activity Since 2015
IT Lab was formed in 2000 - our roots lie in managed IT support. Since taking the helm in 2014, Chief Executive Peter Sweetbaum has pursued an ambitious growth strategy. As a London-based managed service provider (MSP), we expanded north with the 2015 acquisition of Manchester-based MSP JMC IT.
The purchase of IT services company Green Fields Technology followed in 2016, allowing us to further broaden our portfolio of IT services. The same year, private equity firm ECI invested in IT Lab. The multi-million deal was the catalyst for more transformation, enabling the subsequent purchases of cybersecurity specialists Perspective Risk in 2017 and Microsoft partner Content and Code in 2018.
Taking us to the present day, the acquisition of Milton Keynes based Mirus IT boosts our existing capabilities and adds scale. Over 100 (mostly technical) personnel join the IT Lab Group, making us a 700-strong company. The deal adds just under 20% to run-rate revenues (now around £70m) and 14% to EBITDA (now around £10m). Additional funds remain for future acquisitions.
About Mirus IT
Founded by CEO Paul Tomlinson, MIRUS IT is skilled in four areas: backup and disaster recovery (Datto SIRIS/ALTO); cloud services (public, hybrid and on-premise solutions); managed support services; and a hosted VOIP solution and managed print solutions.
Paul Tomlinson is himself no stranger to mergers; the managed print solutions element of his business was the result of the £2.2m 2017 acquisition of 2r Systems. Partners include Datto, HP and – significantly – Microsoft.
IT Lab has known Mirus for several years, with both companies – in common with Content and Code - building a reputation on their Microsoft credentials and expertise.
“What resonates most is the amazing passion and quality of the Mirus team,” commented Peter Sweetbaum. “The quality of service and complete client focus reflects our service obsessed culture.”
Paul Tomlinson said: “Since founding Mirus in 2002, it’s been an amazing journey, but it’s now time for a new chapter with IT Lab and I’m incredibly excited about the future.”
Tom Wrenn, Partner at ECI, added: "We're delighted to welcome Mirus IT into the IT Lab family. This acquisition further cements IT Lab as one of the UK’s leading technology services and solutions providers and supports its strategic goals of reaching new clients and evolving its offering to address clients’ changing needs."
There's an appetite for more deals with the same rationale - to boost existing skills and capacity, or to offer our clients greater choice with the addition of new services.
Our Microsoft partnership will remain core to our business model. It's no coincidence that the last two acquisitions were companies with strong Microsoft credentials, complementing our elite status with the technology behemoth.
These are dynamic times for the IT Lab group, and present our clients with the opportunity to work with one partner who will manage and support all of their IT needs.