Armstrong Bell acquires Tapcast in six-figure deal

Armstrong Bell has acquired Tapcast for an undisclosed six-figure sum, with the deal announced as the Midlands technology company marked its 25th anniversary.

Completed the previous day, the acquisition will bring Tapcast's customers into Armstrong Bell and add to its technical support team. The two businesses are based nine miles apart and already share customers and contacts.

Founder and Managing Director William Copley disclosed the transaction during an anniversary event in Birmingham attended by about 100 customers, staff and guests. The purchase continues a run of acquisitions as Armstrong Bell reshapes its business around managed IT and cybersecurity while maintaining a telecoms operation.

"It may not make the front page of the Financial Times, but it is an important acquisition for Armstrong Bell.

"Tapcast is a natural fit. It gives us greater scale and strengthens the team.

"It also comes at the right time. BT is retiring the old analogue telephone network and wholesale line rental is being withdrawn, but telecoms remains a significant part of our business. This acquisition gives us greater scale as the market changes and real momentum going into next year," said William Copley, Founder and Managing Director of Armstrong Bell.

Tapcast founders Steve and Jane Neal said the sale came as they considered succession and retirement, and that Armstrong Bell was chosen because of the close fit between the businesses.

"As we planned ahead to the next chapter of our lives, we decided that Armstrong Bell would be the ideal fit for the next chapter of Tapcast. We're looking forward to spending more time with our family, particularly our grandchildren," said Steve and Jane Neal, Founders of Tapcast.

Shift in focus

The latest deal follows Armstrong Bell's earlier acquisition of Control and Shift. That purchase helped establish managed IT and cybersecurity as the company's main focus, taking it further from its original roots in cabling and office telephone systems.

Copley said the earlier acquisition provided a faster route into managed services than building a business line from scratch. The deal brought an existing operation, customer relationships and sector experience into the company.

"It was clear to me that we needed to make managed IT and cybersecurity our primary focus in the business. To build that from the ground up, you have to make a lot of investment and then attract customers.

"We were able to acquire a fully functioning managed service provider with heritage, history, knowledge and experience. We then spent time developing that offering and embedding it in Armstrong Bell," said Copley.

Armstrong Bell now works across managed IT, cloud, cybersecurity, communications and connectivity. The company began in 2001 installing cabling and office telephone systems, and Copley said its survival has depended on changing with the market rather than sticking with its original offer.

Security demands

Part of that change has come from the way people now access systems and information. The company's work increasingly centres on securing access across multiple devices and locations, reflecting a shift away from fixed desktop environments.

"It's managing the devices, but more and more now it's managing the user identity and making sure that is secure, because your working day isn't tied to a particular device.

"Your computer is a phone and your phone is a computer. You'll be logging into all kinds of portals from any number of machines. What we need to do is make sure you're secure across all those access points," said Copley.

The business is also developing AI voice agents to handle calls and customer enquiries. Copley said their value depends on whether they can carry out tasks rather than simply provide information.

"Most importantly, if it can take an action, then it's very useful," he said.

"If you can take an action on a website, there's no reason why you shouldn't be able to do it on a phone call with an AI agent. It should have exactly the same capabilities," Copley added.

The anniversary event also drew guests from outside the company. Sir Andy Street, former Managing Director of John Lewis and former Mayor of the West Midlands, attended, while historian Professor Carl Chinn spoke about Birmingham's record of innovation and linked Armstrong Bell's development to the city's wider industrial and technological history.

Copley said the company's progress was driven by adaptation rather than continuity in products.

"If Armstrong Bell had carried on selling what it sold in 2001, we would not still be here.

"The technology has changed almost beyond recognition, but the principles behind the business have not. We understand what our customers need, take responsibility for delivering it properly and build relationships that last.

"The anniversary gave us an opportunity to thank the customers and colleagues who have helped to build Armstrong Bell. Celebrating with so many of them, and announcing our latest acquisition, made it a very special day," said Copley.