Purchase of IT firm boost for Esteem

The Wetherby-based firm bought Midas IT Solution, which was formed in 2009 and is on track to achieve turnover in excess of 1.5m in its first year of trade, for an undisclosed sum.

The deal will enable Esteem to extend the range of software it offers by adding Oracle database software, which is used by Midas, to its list of services.

Joe Connolly, chief executive of Esteem, said: "This was a strategic move to allow us to offer customers a wider range of services across a number of platforms so that we deliver IT solutions based on business benefits and greater return on investment.

"It also takes us into the Oracle market and we will be building on Midas's excellent reputation to offer enhanced services and solutions to customers in this space."

Esteem designs and manages IT systems, including Citrix Systems, Microsoft, Dell and VMware and Sun Microsystems, for a range of companies including BT, Balfour Beatty and North Tees and Hartlepool NHS Trust.

The firm said the acquisition will allow it to make the most of the opportunities created by Oracle's recent acquisition of Sun Microsystems.

Mr Connolly said: "We map Oracle's thinking in that we recognise the value of providing one point of contact and unified support across end-to-end solutions, and providing business benefits to end-users. We're looking forward to working with them as we take on opportunities delivered through their acquisition of Sun Microsystems."

Esteem, which was founded in 1985, has grown through strategic acquisitions and partnerships. It bought Scotland-based Access Computing in 2006, two years after a management buyout backed by Primary Capital, a mid-market private equity firm, in 2004.

It has grown to an annual turnover in excess of 30m and is supported by regional offices throughout the UK. The company employs over 100.

Esteem aims to become a single technology partner for its customers so they have one point of contact with expertise across a number of systems and services.

The company said this flexibility would enable it to focus on delivering IT systems and managed services that are built on business benefits and increased return on investment for its customers rather than shoe-horning technologies into the process.

Cobbetts' Leeds corporate team, which comprised corporate partner, Guy Jackson, and associates, Nia Bryan and Abbie Robinson, advised Esteem Systems on the acquisition.

Mr Jackson said: "The successful acquisition of Midas IT Solutions will present Esteem with a great opportunity to enhance its already excellent offering to customers and to benefit from the reputation and expertise

that Midas has in the Oracle market.

"It is an important strategic move for Esteem and I am delighted that we have been able to assist Joe and his team in their exciting growth strategy."

Rob Thompson, managing director and founder of Midas, which is based in Swindon, Wiltshire, added: "This is a great move for Midas. Both companies are committed to providing the highest levels of customer service and technical expertise. I am sure the combined teams will be a powerful force in the Oracle market place."

Mr Thompson was previously founder and managing director of Midas Computer Software, which was sold to Compel Group in April 2000.

How digital firm grew

Esteem was founded in 1985 as a privately-owned company selling digital hardware equipment.

By 1995 it had expanded its range of services to provide IT installation, configuration and support.

In 2004, a management buy-out, backed by Primary Capital, enabled it to complete the transformation into a full managed services provider and to further expand the business through acquisitions.

In 2006 it bought Scotland-based Access Computing.

It now manages its customers' entire IT infrastructures .

It has grown to an annual turnover in excess of 30m and is supported by regional offices throughout the UK.