Unity Technologies acquires Dublin IT company for €4m
Acquisition of IT Force will boost revenue to more than €16m and positions company for further growth
Unity’s David Hargaden is targeting further growth at the IT cloud managed services company.
Unity Technologies IT, a provider of IT cloud managed services, has acquired IT Force, in a move which will create a new operation with more than 100 employees.
It is understood that Unity paid around €4 million for the Dublin-based technology support company, whose customers include Pigsback.com, RSM and Insomnia.
The deal will allow Unity, which has offices in Dublin and Cork, to further service the needs of its over 600 clients across IT cloud and managed services, professional services and IT security. Revenue for the expanded group is expected to exceed €16 million.
David Hargaden, chief executive of Unity and non-executive chairman of travel group Datalex, will lead the management of the new venture. He said the acquisition will enhance the depth and expertise of what it offers its customers in IT cloud services and cloud security.
“We have ambitious growth plans for the combined businesses into the future, underpinned by the strong recurring customer base and the specialist services we provide. This is another milestone on our growth journey,” he said.
Mr Hargaden has been looking to acquire on behalf of Unity for about three years now, “but this was probably the first time the fit was perfect”, he said, noting that “demand has been incredible” for cloud services on the back of Covid-19 and the surge in working from home.
While IT Force is Unity’s first acquisition, it is unlikely to be its last.
“Our aim is to get to €50million revenue. That’s our aim, but it’s very hard to grow organically in this market. The way you can do that is by acquisition,” he said.
He said the IT cloud sector is ripe for consolidation, with a lot of compnies in the sector operating with sub-€5 million revenues. However, given the pace of growth in the sector, such companies can find it difficult to keep up.
“So you’re going to see a lot of consolidation in that sector,” he said, noting that Unity will be eyeing up another deal by the “back end of next year”.
“We have built a successful business over the last two decades by being a reliable and trusted partner to clients and by providing award winning IT support,” said Roisin Cahill, director of IT Force. “This new venture will enable us offer even more value to our clients and provides exciting opportunities for our colleagues in an expanded operation.”
DunPort Capital Management part funded the transaction. Unity was advised by EY Corporate Finance and ITF by Hornblower Business.