After a three-year moratorium on acquisitions, Bytes Technology Group has bought a majority stake in sales performance improvement company TSPI, for an undisclosed amount.
In May, Robert Venter, CEO of parent company Altron, said there were opportunities for takeovers in the IT space. He said Bytes was “actively looking for opportunities” now that companies are being sold at more reasonable prices.
Bytes has bought 50% plus one share of TSPI, which was founded by CEO Geoff Garrett. The firm focuses on improving companies' sales strategies with its Salestracker solution. TSPI stands for Think Sales Performance Improvement, and arose from the Think Corporation.
TSPI provides sales performance improvement solutions for organisations that are business-to-business-based. Bytes went from being a customer to an investor, says Garrett, who retains the balance of the company.
Bytes MD Rob Abraham says: “TSPI had a powerful impact on our performance in the first year, so we were very keen, on the one hand, to gain access to the company's intellectual property, and to ensure we could drive sales performance across Bytes and Altron.”
TSPI has set itself the target of doubling its client base and turnover in the next three years, says Garrett. Within two years, the company wants to move to a channel-based model and expand internationally.
Garrett's dream is to grow the company's revenue to $1 billion within the next eight to 10 years. He says the Bytes investment will aid this ambition, as it gives the group access to resources. Bytes “got us out of small business syndrome”, he notes.
The Bytes investment allows TSPI to expand and spend more on research and development to add to its offerings, says Garrett. It also gives the company more credibility and will aid it in moving beyond its status as a medium-sized business, he adds.
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