2nd December 2010 - First time buyer opts for hardware expertise to strengthen offer

A Gateshead based firm of IT experts has expanded its business by purchasing an IT Support company with hardware expertise.

Transcendit, which has offices in Team Valley, has bought Durham’s Nectar Electronics in a move to provide fully integrated IT services to the region’s business community, while expanding operations into the south of the region.

The company, which celebrated its tenth birthday in September by raising £2,500 for Newcastle Hospitals’ Children’s Heart Unit Fund, will now be able to provide tailor made software and hardware solutions from under the same roof.

Adam Kuznesof, Transcendit Director, explained: “Buying Nectar Electronics broadens our offer and makes us more competitive. It enables us to provide clients with the complete bespoke package. This means that our clients receive joined up personal service at a lower price than the big household names provide.

“Hardware engineering is a dying art, many engineers end up working for the global corporations and the majority of companies just call up Dell or Hewlett Packard, because they’re not aware of the alternative. By purchasing Nectar we have added four exceptional people to our 13-stong staff to give the north east business community a real alternative choice.”

Tom Tinsley, Transcendit Director, said: “We’ve never done anything like this before, we’re normally quite conservative and we’ve been growing organically. However, Nectar Electronics was such an attractive proposition – a successful business with good turnover and profit. There’s also a synergy between the services we provide to a similar client base, so it made perfect sense.”

Transcendit worked closely with Crutes legal firm and accountants Ryecroft Glenton to ensure the deal went smoothly.

Tom added: “Crutes and Ryecroft Glenton did a great job of setting us on the right road towards making this a reality. As we’ve never purchased a company before, we needed all the advice we could get and the peace of mind that buys. First and foremost, you need to know that what you’re buying is everything that it seems to be. Crutes made sure that the business had been run properly. They were really approachable and good value for money.”

Anne Spetch, Partner at Crutes, added: “It’s clear that the personal approach is very important to the way that TranscendIT do business and it’s an approach that we hold dear. Crutes provides a responsive bespoke service which is all about the client, backed up by a strong track record in corporate and commercial law.

“Purchasing a company can be costly. At Crutes, we don’t want to add to that expense so we offer our clients big hitting lawyers without the big price tag.”

Tim Mallon, Partner at Ryecroft Glenton, said: "We were delighted to assist in the financial aspects of the transaction. The TranscendIT team identified an opportunity to expand their business and pursued their first acquisition with great enthusiasm. We were able to guide them through the due diligence process and advise on structuring and other financial matters. It is good to see a business looking to grow their business in these difficult times."

Adam added: “We’re very excited with our new purchase and we’re looking forward to bringing new people on board and meeting new clients.”

The purchase of Nectar Electronics sees TranscendIT grow to 17 members of staff. When the company launched ten years ago it employed five people.