Viatel has acquired digital transformation specialist ActionPoint in a deal that will see the combined group field c.260 staff.

ActionPoint provides software development and managed IT services to over 500 customers, including Munster Rugby, Chill Insurance, National Lottery, the Department of Foreign Affairs and leading credit unions. 

Viatel chief executive Paul Rellis said: “We have long been admirers of the ActionPoint team and culture. They are a special team and business. They have developed a very strong market proposition, and it is an incredible opportunity for both companies to join forces.

“We believe the combined Viatel and ActionPoint capability will provide the market with a unique proposition: Viatel’s strong roots in telecoms, communications and connectivity bolstered by ActionPoint’s capabilities in software development, the Azure cloud and digital transformation means customers can expect a true end-to-end offering.”

He added that Viatel and ActionPoint will look to emerging Irish tech talent to help them expand their services globally, as follow-on acquisitions are already earmarked for 2022.

In Association with

Viatel operates a national and international network alongside its owned Data Centre facility located in Blanchardstown. Customers include Centric Health, CPL, Voxpro, Kingston International and the Departments of Agriculture and Education.

Rellis added that post acquisition the Viatel group will have revenue of c.€65m in 2022. Deal funding has been sourced from AIB Capital Markets.

ActionPoint chief executive David Jeffreys added: “We are delighted to be joining the Viatel family and creating this new digital services platform. This marks a new chapter in the ActionPoint journey and enables us to continue growing our team across IT, software development and digital transformation while bringing more services to our customers.

“We have partnered with Viatel in the past and were always impressed by their professionalism and customer focus. By joining forces, we are uniquely positioned to deliver the full stack of digital services from data centre and connectivity to cloud, productivity and true digital transformation.”

Action Point Technology Ltd had net current assets of €2.7m in April 2021 and liabilities of €1.9m. Period end trade debtors were €1.1m, down from €1.7m the year before.

The company was established by David Jeffreys and John Savage in 2005, with the founders each owning 26% of the equity.

Jonathan Deane was appointed director in 2007 and owned 22% of the venture. Chairman Ger O'Mahony, who came on board in 2014, had a 13% stake.

Deal consideration was not announced. Venture Legal Services and Grant Thornton acted for Viatel in the acquisition, with HOMS and Deloitte for ActionPoint.

The ActionPoint executive management team will continue in place at the company.

Photo: Paul Rellis (left) and David Jeffreys