Target Information

CANCOM, based in Munich, has signed an agreement to acquire OCSL, a prominent UK IT solutions provider. This transaction marks a strategic step for CANCOM to enhance its presence in the UK market and contribute to its international growth objectives. Earlier in 2018, CANCOM had also acquired Ocean Intelligent Communications, a UK-based Unified Communications and Managed Services provider, which now operates as CANCOM Collaboration and Communication.

The integration of OCSL is intended to establish a significant operational base for CANCOM in the UK, leveraging the combined product portfolios, expertise, and partner networks of both companies. This strategic move will facilitate better service delivery to international customers and strengthen the overall Managed Services offering of the CANCOM Group in the UK.

Industry Overview

The IT solutions sector in the United Kingdom is characterized by rapid growth and innovation, driven largely by the increasing demand for cloud services and digital transformation solutions. The UK's IT industry is estimated to be one of the largest in Europe, showcasing a diverse range of offerings from traditional hardware sales to advanced cloud-based services.

Recent trends indicate a shift towards managed services and consulting, with organizations seeking comprehensive technological solutions to improve operational efficiency. Companies, like OCSL, that focus on cloud and Managed Services have positioned themselves favorably to capitalize on this shift, particularly as businesses transition into hybrid IT environments.

Furthermore, UK businesses continue to invest heavily in IT infrastructure modernization and digitalization to remain competitive in the global market. The drive for efficiency and enhanced customer engagement continues to propel the growth of IT service providers, making the landscape lucrative for new entrants and established companies alike.

Overall, the UK remains a strong market for IT solutions, with ongoing investments in innovation and technology. This sets a favorable backdrop for CANCOM to solidify its position through strategic acquisitions like that of OCSL.

Rationale Behind the Deal

CANCOM aims to expand its Cloud and Managed Services business, necessitating an international strategy. The acquisition of OCSL strengthens CANCOM's capabilities in the UK, enabling enhanced collaboration between the two new entities under the CANCOM umbrella. This enables the introduction of advanced IT management solutions to existing and prospective clients, thereby fostering market penetration and service delivery improvements.

By establishing a robust footprint in the UK, CANCOM can better serve its international clientele and drive the company's transformation into a globally recognized entity.

Investor Information

CANCOM SE is a recognized player in the field of digital transformation, providing a wide range of IT solutions tailored to meet the evolving needs of businesses. The company employs over 3,000 professionals globally and maintains a strong partner network across several countries, including Germany, Austria, Switzerland, Belgium, the UK, and the USA.

Founded by Klaus Weinmann, CANCOM focuses on enhancing its portfolio to support the digital transition of its clients, with services extending from consulting to implementation and management. The firm continues to display robust financial performance, reporting annual revenues exceeding one billion euros, which sets a solid foundation for ongoing investments and expansion activities.

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The acquisition of OCSL by CANCOM is likely to be a favorable investment, considering OCSL's established market presence and growing service-oriented strategy. The alignment in corporate culture and business vision between the two companies enhances the potential for a smooth integration and consequent success.

By diversifying its offerings and expanding its operational capabilities in the UK, CANCOM is positioning itself to tap into the lucrative cloud and managed services sector. This move not only reinforces CANCOM’s market stance but also serves as a strategic response to increasing global demands for comprehensive IT solutions.

Moreover, with OCSL's focus on transforming into a more services-oriented company, CANCOM's involvement is expected to accelerate this transformation process. The merger of their expertise and resources could lead to the development of innovative solutions tailored to market needs.

In conclusion, this acquisition not only provides CANCOM with the necessary infrastructure to enhance its service delivery but also positions the company to achieve prolonged growth and sustainability in the competitive IT environment in the UK.

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