- Xpand IT has announced that it has acquired a major stake in KwaZulu-Natal’s IT support service company Rapid IT.
- This will assist Xpand IT to strengthen its presence in the province while also giving Rapid IT access to a suite of benefits.
- Xpand IT says this majority stake is part of its goal to become a major player in the managed service provider space on the continent.
Local IT solutions provider Xpand IT has announced that it has acquired a major stake in KwaZulu-Natal’s IT support service company Rapid IT.
The acquisition comes as Xpand IT looks to strengthen its foothold in the province as it sees substantial growth potential there.
“Although we have been operating in KZN for many years, it is a market that demands a strong local presence to gain momentum. Clinton Coetsee, the Managing Director of Rapid IT, has an incredible reputation in the region. He is highly respected, and our values and business ethics are perfectly aligned, which is critical for a successful partnership,” says Brett Scott, managing director at Xpand IT.
“Rapid IT will leverage our technical workforce to serve clients better and attract new ones. Our commercial team will introduce robust solutions, including our security offerings and other services designed to reduce operational costs and improve efficiencies,” the MD added.
Rapid IT will get access to Xpand IT’s resources, technology and expertise, allowing it to enhance its service offering. The KZN-based firm will also benefit from streamlined financial systems, alleviating operational burdens.
“This partnership stems from a strong relationship, built on years of collaboration, discussions, and planning. Access to Xpand IT’s resources will enable us to respond to clients more swiftly and scale our business without technical limitations,” Coetsee commented on behalf of Rapid IT.
With this stake in Rapid IT, Xpand IT hopes to not only expand its presence in KZN, but also establish itself a major player in the managed service provider space on the African continent. This is a growing space with revenue in the MSP sector projected to reach $24.68 billion globally this year alone. This growth is expected to continue, according to data from Statista, at a compound annual growth rate of 2.67 percent, reaching $28.15 billion by 2029.
The company looks well positioned for growth with a presence across most of South Africa and it even has an office in London. The focus on Africa makes sense though as the continent becomes more digitally focussed and more businesses come online.
