Project Edge, Risc IT Solutions and Novem IT CEO Alex Heslip is ramping up his hunt for comms and IT companies in a bold bid to build a £50 million-plus revenue business by 2028.
As part of Heslip’s acquisition efforts he will look to purchase comms and IT resellers that fit his strict criteria... small MSPs and telecom businesses, typically turning over £3 million to £5 million and employing 15 to 30 people. This acquisition agenda is progressing under the Project Edge name, an investment company led by Heslip and backed by TDC. “We have access to significant funding which will help us accelerate our acquisition strategy and go nationwide,” stated Heslip. “We are in the process of acquiring a third MSP and hope to complete by the end of the year, and rebrand the group in 2025.”
He first started looking for SME focused IT and telecom firms to acquire in January 2022. It took 18 months to buy the first company, Risc IT Solutions; and Project Edge completed its second acquisition, Novem IT, in July this year. “Both businesses have been around for 20 years and we acquired them from the original founders,” said Heslip.
Accelerating market consolidation is the biggest factor influencing his strategy. And he says the high number of comms and IT business owners coming up for retirement represents a big opportunity for potential acquisition targets. “There are many thousands of managed IT and telecoms business owners in the UK who will be considering how they exit their business, typically due to retirement,” added Heslip. “When they are ready, we want to be there to see if we’re the right fit for them.”
We have access to significant funding which will help us accelerate our acquisition strategy and go nationwide
He aims to create a single business that provides a one-stop-shop for IT, telecoms and cybersecurity, serving UK SMEs employing 20-250 people. “In five years time I see us supplying thousands of customers, turning over more than £50 million with a 200-plus headcount,” said Heslip.
A key metric behind Project Edge’s acquisition drive is of course growth. Risc IT Solutions grew by 12 per cent last year and Novem is growing by over 20 per cent a year. “We aim to continue to grow those businesses at the same rates,” stated Heslip. “Between the two companies we serve over 700 customers with our typical 20-250 headcount. However, we have many very small customers as well as some that employ over 1,000 people.”
Heslip noted that Microsoft is the dominant player and is a key partner with Risc IT being a tier 1 CSP. Both acquired businesses are accredited Modern Work practices. “We partner with many other vendors such as Redstor, Eset, Wavenet, Gamma and Giacom,” he added.
Heslip also has a clear and focused strategy on organic growth within the existing customer base. “The key to unlocking that potential is in establishing trust,” he explained. “Furthermore, winning new customers in IT is all about having a good reputation, continually delivering a quality service and being a partner that can help customers remain secure. Most SMEs do not have the right technology in place to protect their data and infrastructure from cyber criminals. Over the coming years we’ll be helping to educate SMEs on what they need to be putting in place.”
At an industry level Heslip expects annual growth in IT to remain in double digits, driven predominantly by increased cybersecurity risk. He is also investing in AI and automation technology to improve customer service – technologies that were unimagined when he first entered the comms market in the early 1990s. “So much has changed since then,” he added. “However, many things remain the same. Businesses still need to communicate, they still want good service and they still need selling to.”
Just a minute with Alex Heslip...
Role model:
My dad: He is such a kind and calm man.
Your main strength and what could you work on?
My superpower is a positive mental attitude, but I have to work hard on organisation.
Three ideal dinner guests:
My fiancée Olivia, an amazing woman who is wonderfully supportive; Kevin Sinfield, a top rugby man, and I’m amazed at the support he gave to Rob Burrows; Winston Churchill, for his quirky character and fascinating life.
If you weren’t working in the ICT sector what would you be doing?
I’d be in the fitness industry.
Your favourite comedian or comedienne?
Michael McIntyre.
Best advice you have been given:
It’s never as bad as you think, and never as good as you hope.
What talent do you wish you had?
The ability to tell a joke.
The biggest risk you have taken:
Starting Project Edge: It took 18 months of effort, no income and a lot of capital at risk... just to get to the start line.
Your biggest career achievement:
Bringing people together to serve a common purpose. At Verastar and Project Edge I built strong teams both organically and through acquisition. I believe in openness and honesty; if you’re straight with people you build trust.
One example of something you have overcome:
Divorce.
What is today’s top leadership priority?
Communication is critical. I want our people to be plugged into what the business is doing, why we’re doing it and what it means for all major stakeholders.
If you could change any aspect of the tech revolution what would it be?
Faster Internet speeds, available to more premises, delivered in shorter timeframes and at a lower cost.
Tell us something about yourself we don’t know:
I go to the gym before work every day.
With the benefit of hindsight what would you have done differently?
I did a tech start-up in the early noughties and exited too early – other people made a lot more money than me. Timing is everything.
What do you fear most?
Ill health.
Top tip for resellers: Keep your business growing to increase its worth and be more attractive to acquirers.
Editor’s comment...
a Comms Dealer survey of channel leaders underlines a critical point made by Heslip in this article – that the key to unlocking market potential is in establishing trust. In our study, the vast majority want their business to be famous for trustworthiness, but 82 per cent say trust between their organisation and customers has become more complex and multifaceted. Meeting this challenge is key. To find out more download the free Leadership report here: https://www.comms-dealer.com/whitepaper/gain-advantage-through-leadership