Welcoming Modrus to team Nasstar
We are delighted to announce the latest addition to Team Nasstar, the hosted managed services provider Modrus Ltd.
Following our press releases and announcements today, we are now able to talk freely about the acquisition and the fantastic synergies we see at Modrus, ones that resonate strongly with our own core business and bring with them some exciting synergies.
Our CEO Nigel Redwood has known the Managing Director of Modrus for a number of years now and it is no secret that we have openly competed against Modrus in the hosted services space for a long time, they have been excellent competitors and we are thrilled that we are finally joining forces with such a strong team.
The senior team at Modrus is led by Managing Director Edward Armitage, who will be staying on and joining Nasstar to work with us on the integration of Modrus. We are pleased to welcome the rest of Edward's team to our ranks, Edward's right hand man Jeremy Hamilton brings with him his extensive expertise in the field of sales and marketing strategy, as well as change management which will be useful in the coming months.
We have gained huge amounts of implementation experience in the form of Mike Porter, Modrus's Service Inception & Compliance Manager and Head of Modrus's Service Desk, Aaron Moore who brings with him a wealth of operational knowledge. Melanie Simmons is running the Project Office at Modrus, ensuring customers are happy and the business meets its financial goals for new service revenue. Last but not least, strengthening our finance team is the excellent Alison Small, the Financial Controller at Modrus who will be joining our team to assist with the financial integration.
Although I have only mentioned Modrus's Senior Management, we should also not forget the additional forty new members of Team Nasstar we have in the form of Modrus's top notch operations and support team, raising our total number of employees to 191, bolstering the depth of Nasstar’s engineering expertise. Welcome all of you to Team Nasstar, it really is a pleasure to be working with you all.
The addition of Modrus to the Nasstar group strengthens the whole, Modrus was founded in 2004 and is a provider of managed IT services and telecoms to SMEs, offering a comprehensive cloud service including hosted desktop and managed telephonyservices.
Modus is in an excellent financial position, with a strong and loyal customer base, generating £6.1M of revenues of which 86% is contracted recurring revenue, and a balanced portfolio of managed and hosted services, the acquisition of Modrus adds a further 140 managed service clients to Nasstar’s existing customer portfolio.
For us at Nasstar, over and above our desire to work with the fantastically strong team that came with the company, the Modrus acquisition was primarily about two important key strategic goals for us:
Customer Base Resilience
Modrus's strong customer base, which spread across three key verticals (property services, media and independent software vendors) provides us with an excellent beach head into those markets and builds resilience into our existing client base, diluting reliance on our existing four key verticals, broadening and strengthening our overall customer portfolio and exposure to industry specific risks.
Modrus have a tremendously strong operational team, one that will bring a wealth of experience and knowledge into Team Nasstar, but beyond that we are especially pleased at having a presence in New Zealand. Providing 24/7 technical support in the UK means that we have to operate a fully manned support line twenty four hours a day, but with the addition of the New Zealand office, we are now able to let our UK support engineers catch up on some sleep, while our New Zealand cousins are wide awake and eating their breakfast.
Finally, a comment from the excellent Edward Armitage, Managing Director of Modrus:
"We are extremely excited to be joining the Nasstar group and on a personal note, I am delighted to join the Nasstar leadership team and look forward to working with the team for many years to come."
And a comment from our very own CEO Nigel Redwood:
"Modrus introduces three new target market verticals to Nasstar's product suite -- media, property services and ISVs whilst adding further penetration in financial services and recruitment. This acquisition represents a highly complementary fit with obvious synergies within licensing costs and data centre consolidation."