Expanding Esteem Systems buys again

Wetherby-based Esteem bought SiRViS IT Holdings, which operates in the UK and Europe, following a deal in May to buy Midas IT Solutions.

Esteem, which has grown steadily through buy-outs and partnerships, designs and manages information technology systems, including Citrix Systems, Microsoft, Dell and VMware and Sun Microsystems, for companies including BT and Balfour Beatty. It has a turnover of more than 30m. The latest deal was backed by Primary Capital, a mid-market private equity firm, and Lloyds TSB. Cobbetts' Leeds office advised Esteem.

Joe Connolly, chief executive of Esteem Systems, said: "Our aim this year is to grow Esteem to a thriving 60m business both organically and through acquisition, despite difficult market conditions, so the acquisition of SiRViS is an important part of this strategy.

"SiRViS will complement our specialised managed services portfolio with its reputable outsourced customer and IT service capabilities and doubles the size of our business to 230 employees."

SiRViS, which trades as Linetex and ATM, is based at Woking in Surrey.

It has 130 staff and provides on-site and remote IT services and support.

Linetex and ATM will continue to be managed as a separate division by its current management team.

Guy Jackson, corporate partner at Cobbets, said: "For Esteem, the acquisition of Sirvis will enable the company to develop its offering into the outsourced customer services and IT services sectors, which have experienced rapid growth in recent months as businesses look to reduce costs and improve operational flexibility."