Succession: TekNet acquires 25 year old SA family business Loftus IT

The recently established South Australian office of UK firm TekNet has acquired local IT managed services pioneer Loftus IT for an undisclosed sum in a future succession move. Ten of Loftus IT’s thirteen staff, including all senior tech, sales and administrative staff, as well as founder Ken Sullivan, will be retained under the arrangement as will the Loftus IT brand.

TekNet was established in the UK in 1998 and is part of the Flywheel IT Services group, which has global operations in the UK, Europe and the USA.  Loftus IT is celebrating its 25th year and founder Ken Sullivan said that the acquisition of Loftus IT by TekNet SA will strengthen its service offering in the local market and beyond.

“TekNet have global experience and will add some specialist services such as advanced Cyber Security and Data Protection to our local offering,” explained Mr Sullivan.

“Whilst I will be involved in the business for the foreseeable future, I am approaching retirement age and am delighted that this agreement will enable the Loftus IT brand to continue to grow locally, nationally and Internationally” added Mr. Sullivan.

Loftus IT was established in 1994 with its services covering the entire lifecycle of IT systems for business including systems design and architecture, procurement, service-desk, security and project management.  Loftus clients include leading local brands and Australian brands such as Benson RadiologyBeerenbergRobern MenzShaw+Smith and Weber Australia, to name a few.  

Business succession is critical for economic growth. TekNet Managing Director John Stronnar said that the acquisition of Loftus IT was a win-win for both parties and an ideal way for his business to continue to expand it’s foothold in the South Australian market.

“As a recent arrival in South Australia I am delighted to be investing in a local SA business with a solid reputation and capacity to grow,” explained Mr Stronnar.

“The South Australian economy is evolving and new industries such as space, defence, creative arts and biomedicine are flourishing and with that comes many opportunities especially in security, cloud and managed services.”

“Our global reach and experience will become increasingly advantageous to us locally as AI, automation and machine-learning continue to transform business,” added Mr Stronnar.

TekNet and Loftus IT have a similar background, both having grown from humble beginnings.

“TekNet grew out of a garage in Northampton, servicing local clients, to become a national and international business with over 300 diverse and exciting clients” explained Mr Stronnar.

“Ken and I are collaborating to maximise the benefits for existing clients and to craft a growth strategy that will take the Loftus TekNet brand to new heights,” added Mr Stronnar.

Turnaround Practitioner Eddie Griffith acted as an advisor throughout the transitional phase. Eddie was delighted such a positive outcome was achieved stating that succession planning in business is critical for sustainable economic growth. A 25 year celebratory event was held in November in recognition of the Loftus IT brand and to pay tribute to staff, clients and customers. South Australian business owners and leaders were in attendance.

 

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