Datatec's Logicalis Acquires UK Consultancy to Enhance Advisory Services

What's Happening?

Datatec's ICT services arm, Logicalis UK&I, has acquired the UK consultancy Q Associates. This acquisition aims to enhance Logicalis's advisory capabilities and expand its service offerings. The move marks a strategic shift for Datatec from traditional infrastructure to higher-margin consultancy and managed services. Q Associates brings expertise in digital infrastructure, networking, and cloud services, along with strong relationships in sectors such as higher education, government, and commercial enterprises. Jens Montanana, CEO of Datatec, emphasized that the acquisition will bolster Logicalis's ability to support clients in digital transformations and cross-sell advisory services alongside infrastructure contracts.

Why It's Important?

The acquisition of Q Associates by Logicalis represents a significant shift in the business model of Datatec, aligning with global trends where technology integrators are evolving into solution consultancies. This transition is crucial as advisory services typically offer better margins and recurring revenue opportunities. The integration of Q Associates is expected to enhance Logicalis's presence in regulated sectors like defense and government, where advisory skills are critical. This move could position Logicalis to compete with global players like Accenture and Capgemini, potentially leading to further growth and expansion in other regions.

What's Next?

The successful integration of Q Associates into Logicalis will be key to realizing the potential benefits of the acquisition. Challenges such as cultural alignment and retention of key talent will need to be addressed to avoid internal friction. If successful, Logicalis may replicate this acquisition strategy in other geographies, further transforming its business model and expanding its market reach.