Gamma goes Dutch with Dean One Acquisition
The move sees Gamma expand into the lucrative European market
Leading UK cloud communications provider Gamma are expanding into Europe as they announce the acquisition of Netherlands based DX Groep BV (“Dean One”).
Dean One, a growing telecoms group based in the Netherlands, has several synergies with Gamma in that they carry a similar portfolio in Cloud PBX services, SIP Trunking and connectivity. They also supply to the SME market largely through their network of approximately 500 channel partners. Dean One currently employs approximately 60 people and in the year ended 31 December 2017 revenue was c. €15.8 million and EBITDA was c. €0.8million.
“We are really pleased to announce the acquisition of Dean One. It is an ideal way for us to expand into a new geography, opening up another growth opportunity for us.”
“We have known the Dean One team for a number of years and see the business as a very good fit. We are really looking forward to working alongside the Dean One team as we continue to grow Gamma, leveraging our experience and resources, to capitalise on the opportunities ahead.” Commented Andrew Taylor, Chief Executive of Gamma.
Commenting on the acquisition, Klaas Bottema, co-Chief Executive of Dean One added that:
“Gamma is the right home for Dean One, as we look to accelerate the success we have seen in the Netherlands.”
“They have tremendous technical and market expertise, and a track record in building and managing the Channel. With their support, there is no doubt that we can grow more quickly and move into other markets which we don’t currently serve. We know Gamma very well and believe that this is a positive development for all involved.”
The cloud communications market in the Netherlands is very similar to that of the UK in terms of maturity and market penetration, making this a natural fit for Gamma as they look to expand beyond the UK market. Both Gamma and Dean One see this as an exciting opportunity. For Dean One they will now have access to products and services that have been successful in the UK. And for Gamma this provides a focal point through which they can broaden their geographic footprint in the medium term.
“This acquisition represents the maturing of the cloud communications market where providers look to expand internationally to increase their available market.” Commented Dominic Black, Senior Market Analyst for Cavell Group. “For Gamma, the market leaders in the UK in SIP Trunking and one of the largest cloud communications providers the acquisition gives them a reseller and user base in a highly competitive market where entering and building organically might be difficult.”
“It’s going to be fascinating to see how the market will evolve with KPN/RoutIT and Voiceworks facing another strong SME focused wholesaler in Gamma.”
“DeanOne have built a great business in the Netherlands and this deal should hopefully give them the ability to scale up. By no means is this going to be the last acquisition in the market. We’ve seen so much M&A activity in the last 12 month with vendors, Service Providers and resellers looking at how they can scale and remain competitive and we are in conversation with many companies looking to either sell or acquire as they think it is now or never.”