04 Aug 2015 | 11.50 am
Strencom Acquires Storage Online
Deal adds disaster recovery expertise
04 Aug 2015 | 11.50 am
Strencom, a provider of managed connectivity and cloud computing, has acquired Storage Online, which specialises in disaster recovery as a service, in a deal that Strencom said will boost turnover by €2m over the next three years.
Storage Online employs five people. The acquisition will see these five roles being integrated into Strencom, bringing its total number of employees to 30.
The acquisition by Strencom is the first one for the company, which is actively looking to acquire more cloud services companies.
Strencom was founded in 2000 and is fashioned around two core business offerings – managed hosting and unified communications as a service. With offices in Dublin, Cork and the UK, Strencom’s domestic clients include firms working in the retail, agri-business, financial, and construction/engineering industries.
Founder and CEO Tim Murphy said that Strencom’s average deal size has doubled to €120,000 since 2013. Its network is used by most Irish citizens at least once a week for purchasing groceries or collecting pharmacy prescriptions.
Fulnett Ltd, the Strencom operating company, booked a net profit of €100,000 in 2014 and ended the year with a net worth of €979,000. Balance sheet cash reduced through 2014 from €1.4m to €908,000 in December 2014. Year-end liabilities amounted to €1.3m.
According to Murphy, the decision to acquire Storage Online made sense, as its offering integrated with Strencom’s services and customer demands. He added: “Historically, organisations have spent a lot of money and resources on back-up, however very little is spent on testing the ability to recover.”
Lewis McMahon, managing director of Storage Online, added: “Our expert knowledge and experience of managed backup and recovery services fits very well with Strencom’s provision of hosting in the cloud. Strencom were already selling our services so the acquisition was a logical next step.”
Established in 1999, Storage Online has 43 customers, including local authorities and the HSE. The company specialises in managed backup and recovery services. It booked a loss of €57,000 in 2012 and a loss of €198,000 in 2013 and had a negative net worth of €36,000 at year-end. The company was jointly owned by McMahon and Donna Sexton.