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HOME REGIONS Russia & CIS › Sparxent plans Russia ramp up with Arbyte move

Sparxent plans Russia ramp up with Arbyte move

by Stuart Wilson, Tuesday 16 September 2008

Sparxent, a US-based start-up VAR with aggressive worldwide expansion plans, has signed a letter of intent to snap up Moscow-based IT service provider Arbyte. Sparxent wants to position itself as a vendor agnostic midmarket IT and business solution provider and is preparing a string of acquisitions to make its mark in this sector. Arbyte Group has a significant customer base in the Russian Federation and Ukraine.

"Arbyte has established a strong record of growth and built a broad customer base in one of the fastest growing economies in the world. The company is recognised as a premier IT services group for medium-sized customers in Russia," said Steve DeWindt, co-founder of Sparxent. "This acquisition is an important step in expanding Sparxent’s geographic reach and strengthening our portfolio of technology solutions."

Established in 1994, Arbyte Group has built a business that offers a range of IT consulting, software and hardware solutions. Set up in 1994, Arbyte has achieved an annual growth rate of approximately 30%. Arbyte is a leading Microsoft partner delivering professional services based on Microsoft Dynamics AX for the Russian mid-market. Arbyte is also a Symantec gold partner, Netaphor VAD and LANDesk VAD and training centre.

"Joining Sparxent provides our business with additional resources, access to new geographic markets and opportunities to cross-sell solutions from Sparxent’s broader portfolio of services," said Oleg Kukushkin, president of Arbyte. "We are delighted to become part of this new model for delivering enterprise class IT services to mid-market customers."

Sparxent is focusing on uniting consulting, solutions, integration, development and services into a single source for IT. By acquiring local IT providers like Arbyte and bringing them together under a single umbrella, Sparxent reckons it can act as a single source for IT for medium-sized companies.

Sparxent was officially founded in August 2008. “Although the middle tier of the market makes up nearly half of overall IT spending, there are few dedicated IT resources focused on this segment,” stated DeWindt at the time. “We feel that there is a unique opportunity to create a new business model through the marriage of consulting, solutions, integration, development and services that are solely focused on the under-served mid-market.”

Sparxent believes that midmarket customers have had to choose between traditional VARs with deep expertise in a single vendor’s solution, or VARs that sell a broad variety of software but have little expertise in creating integrated solutions for the customer. Sparxent claims that its approach will be to consult with mid-market customers to find and deliver the ideal business or IT solution, regardless of vendor or delivery model.

Sparxent plans additional acquisitions of solution providers to further broaden its geographic reach and footprint. The company also expects to enter into strategic joint ventures, and make acquisitions of select software development and integration companies.

“By acquiring established, local IT providers around the globe and bringing them together under one umbrella, Sparxent will act as a single source for IT – providing the broadest array of expertise and tools to the middle market,” said Dave Taylor, Sparxent co-founder. “The key to our comprehensive approach is to bridge the gap between VARs that lack the software competency to provide true integration and software development companies that are not equipped to provide a breadth of consulting services.”

DeWindt and Taylor bring more than 20 years of experience each in executive management and global sales, as well as establishing new technology companies. DeWindt’s CV includes stints as director of worldwide reseller sales at Intel and co-president at Computer 2000 AG. Taylor was part of the original management team at LANDesk Software and during his 15-year tenure held various roles. He previously held positions at Intel and Microsoft.

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