A SOFTWARE company employing 165 people on the outskirts of York is under new ownership after being acquired by Manchester-based counterpart Bytes Technology Group.

Phoenix Software, near Pocklington, which has an annual turnover of more than £130 million is now part of Bytes, a wholly-owned subsidiary of the JSE-listed Altron Group.

The enlarged company, which covers a larger geographical area following the deal, is expected to deliver revenues this year of around £400 million, with a headcount of 480 staff.

Phoenix is one of the largest UK IT resellers with more than eighty percent of the business being UK public sector orientated. It has a presence on all the main framework agreements for public Sector procurement in the UK.

With a presence predominantly in the north, Phoenix joins Bytes, which has a 35-year history of dealing mostly in the south.

Sam Mudd, Phoenix Software managing director, said: “This is extremely positive news and our announcement has come at the right time for our company and staff, in terms of navigating the fast-changing world of IT in which we operate and the channel consolidation that is taking place.

“We see plenty of synergies and are excited about working with new complementary offerings, and taking our joint businesses forward with ambitious growth plans across all our vertical sectors.

“Everyone is extremely proud of our two UK-renowned organisations coming together. These are exciting times ahead of us, and I recognise this is a very important IT merger that will deliver strength of customer service and national coverage on a significant level.

“On behalf of the Bytes Technology Group UK and Phoenix Software Ltd and myself, I would like to thank all our staff, partners and suppliers for their help, support and partnership as we move into our next phase of growth and evolution.”

Phoenix’s customers are drawn from some of the UK’s largest organisations including the NHS, emergency services, housing associations and a number of large local authorities, as well as many smaller organisations such as schools, charities and local businesses.

Neil Murphy, Bytes UK Group managing director said: “Both companies bring different qualities and strengths which can help deliver even greater quality services to our combined customer base.”