Babble acquires Microsoft’s leading CSP, TechQuarters

Babble announces the acquisition of TechQuarters, a multi-award-winning Microsoft Cloud Solution Provider (CSP) servicing SMB and Enterprise customers across the UK.

The acquisition, Babble’s second of 2023, further strengthens Babble’s growing Cloud Service Provider business. This accelerates Babble’s move from being the UK’s leading Cloud Comms player to the leading Cloud Services Provider, Comms and IT MSP, further differentiating Babble from its historical peers and cementing Babble’s position as a key partner for Microsoft’s business cloud offerings.

The deal significantly deepens Babble’s Microsoft expertise across Office 365, Sentinel and Azure. TechQuarters is a leading supplier of Microsoft solutions: it has beaten 600,000 other companies to be awarded ‘Microsoft Cloud Champions’ two years running and it was also named Microsoft World Cloud Partner of the Year for SMBs.

Babble’s focus on being the only MSP with SaaS like financials is reinforced with TechQuarters’ recurring revenue at 85% with organic growth at 40%+.

Matt Parker, CEO of Babble, said, “We’re already a Microsoft Gold Partner holding Microsoft Cloud Solution Provider status, growing faster than any other Microsoft CSP. This deal accelerates our capabilities for the full range of Microsoft Solutions that businesses rely upon and cements Babble as the only UK Cloud Services Provider of both Comms and IT MSP solutions at scale.

“This moves us another step closer to our aim of being the UK’s largest and preferred Cloud Service Provider, with local ‘hubs’ located across the country. The long-term goal of creating these hubs is so we can run the business as a national one, while still providing customers with the individual and local support that they need.”

Brian Parker, founding Director at ICON Corporate Finance, which advised on the deal said, “This was a hugely competitive process. The combination of a first-class team, strong organic customer growth, and recurring revenue attracted upwards of 20 bidders. We believe Techquarters has found the best possible home as part Babble.”

Babble is also announcing today the acquisition of Stonegate, a Microsoft-focused MSP based in Bury.

The combination of TechQuarters and Stonegate further bolsters Babble’s customer support capabilities, with both companies bringing reliable and proactive customer service records, collectively a team of more than 45 experts. They have both deployed highly effective remote and offshore support models, and Babble will integrate this into its existing offering to bring its customers 24/7 support and training.

Parker continues, “The acquisitions of both TechQuarters and Stonegate will allow us to further diversify and broaden our offering in order for more companies to successfully adopt the cloud. We are laser focused on delivering exceptional quality of service for our customers, ensuring we are always by their side, whenever they need us, helping them transform their businesses.”

About Babble

Babble is a leading technology business that is reimagining how we do work. Founded in 2001, the company works with over 16,000 organisations in a wide range of sectors – including financial, health and education, travel and accommodation, and public services – by sourcing deploying and supporting locally the very best cloud solutions.

Babble’s growth over the last few years is one of the big success stories in its industry. This is demonstrated by the private equity investment of Graphite Capital in November 2020 – which was supported by reinvestment from LDC and management – to accelerate the buy and build strategy for the business. Annual revenue has rapidly grown to £100m – 90%+ of which is recurring. It has over 150,000 cloud-based users, 150,000 mobile connections and 8,000 CCaaS supported agents.


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