Managed print outfit Apogee has snapped up the Kent-based provider of print, document and IT solutions for businesses and public sector organisations Direct-Tec Group.
The group has offices throughout the UK including Southampton, London, Tonbridge and Salisbury, and focuses on the education, healthcare, legal, charity and commercial verticals.
HP today announced a definitive agreement to acquire UK office equipment dealer (OED) Apogee.
The transaction values Apogee as of closing at £380 million.
This acquisition furthers HP’s plan to disrupt the $55 billion A3 copier market and builds on its printing strategy to: enhance its A3 and A4 product portfolio; build differentiated solutions and tools to expand its Managed Print Services (MPS); and invest in its direct and indirect go-to-market (GTM) capabilities. This includes the selective acquisition of OEDs that provide access to increased profit pools from higher margin services. Or so HP thinks.
“The Apogee acquisition extends HP’s print leadership by boldly leveraging the industry shift to contractual sales as we aggressively pursue the A3 office market,” said Enrique Lores, President, HP Imaging and Print. “We’re augmenting our go-to-market and enhancing our ability to deliver the services necessary to win in the profitable contractual market. This deal complements our broader channel strategy and HP remains committed to building our business through our best-in-class partner programme.”
HP has been investing in the A3 business with strategic initiatives including the acquisition of Samsung’s printer business and the launch of a portfolio of superior A3 and A4 multi-function printers based on unique IP and value-added services and solutions. Today’s transaction expands HP’s services portfolio in contractual office printing and MPS categories, where solutions are increasingly important for small and medium businesses (SMBs).
Apogee is an OED. The company brings what HP considers to bestrong capabilities in contractual printing services and solutions, an experienced leadership team and access to SMB and mid-market customers.
The deal is expected to close by the end of calendar year 2018, pending regulatory review and other customary closing conditions.
Following the close, Apogee will operate as an independent subsidiary of HP, with a governing board comprised of HP and Apogee management. Apogee will have the same commercial relationship with HP as any other premium partner with access to the same tools and partner programmes, HP reckons.
 
Apogee has written a cheque for fellow print outfit Danwood, claiming their glorious nuptials union will create Europe’s largest independent specialist in managing print.
Apogee made the announcement, confirming it has snapped up Danwood for an undisclosed sum.
In the announcement, Apogee said its board of directors, led by its joint CEOs Jason Colins and Robin Stanton-Gleaves, will continue to manage the group following the deal.
Apogee said Danwood’s presence in the SME, corporate and public sector space in the UK will “significantly enhance” its client base, which currently consists of 10,000 retained customers and 8,000 transactional ones.
Apogee’s Collins said: “This significant acquisition for Apogee provides us with the scale and reach to be a leading player in the European market for managed print services. Danwood has terrific strengths that complement Apogee’s offering and strategy, including a large client base of major corporate businesses, government and public sector organisations, and a strong service network that will increase the group’s coverage and capacity to support its clients across the UK and continental Europe.”
Managed print player Apogee has written a check for an Irish firm to add to the Scottish, Welsh and German businesses it has already collected this year.
In January Apogee’s joint CEO Jason Collins said: “Apogee will continue to grow its UK business in 2016 through organic growth and further acquisitions of organisations in the range of £1 million to £50 million turnover.”
The outfit has bought Welsh firm Kon-x in April and last month bought Scottish print and copy specialist Direct Business Systems.The DBS deal gave the firm a larger footprint North of the border and and now it has bought Hibernian Business Equipment in a bid to break into the Irish market.
Hibernian is a print management outfit with offices in Limerick, Dublin and Galway. Its main focus is government departments. Hibernian’s founder Gerald Wall will continue to lead the Irish business.
Hibernian managing director Wall said that being part of a larger group gave it the chance to compete for larger deals.
Managed print and document services outfit Apogee has woken up and found a big chunk of itself has been bought by private equity investor Equistone Partners Europe.
Maidstone-headquartered Apogee employs around 450 staff across 14 offices in the UK and mainland Europe selling hardware and managed services on kit from Canon, Xerox, Konica Minolta and Kyocera.
The Apogee founders Jason Collins and Robin Stanton-Gleaves will stay in charge but Equistone’s minions Steve O’Hare and Andrew Backen will join the board. Equistone’s cash means that the company is valued at £185m, the parties said.
Money raised from sale will be used to fund an expansion programme.
Apogee sells its services to the likes of McDonalds, which bought a print infrastructure and managed service, as well as fashion label Ted Baker, PC maker Dell and BDO.
It is doing quite well. In 2014, Apogee turned over £66.1 million and reported operating profit of £7.47 million. In 2015 the firm bought fellow print managed print services business Balreed Group.
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