A buy-up for an undisclosed sum is set to create what is thought to be the largest IT service provider in the island.

It means the marrying up of two big names in the island in the world of technology, Argon and Skanco Business Systems, along with Skanco’s sister company Restart Ltd.

It is still early days after the deal but eventually the Skanco and Restart names will go to come under the one brand name of Argon.

The acquisition announcement by Argon follows a string of mergers and acquisitions in the island this year.

Argon managing director Iain Fairbairn said the buy-up will mean the combined business will have a total staff of 37 with around 30 of these being technical based.

He told Business News that ’unfortunately’ a couple of people in senior positions at Skanco will be lost to avoid ’duplication’ of jobs.

Otherwise it would be ’business as usual’ for staff.

Asked by Business News, Mr Fairbairn added that the acquisition was for an undisclosed sum saying it was confidential at this stage between the businesses concerned.

The primary operational base for the enlarged business will be at the Isle of Man Business Park on the Restart Limited premises situated behind Manx Telecom’s base.

This will be complemented by the disaster recovery facilities and administration base at Argon House at the Freeport, Ballasalla.

Mr Fairbairn said the familiar Skanco building near B&Q is being vacated.

Mr Fairbairn confirmed that in due course the businesses will eventually come together under the Argon banner.

He said it was a great opportunity to bring together Argon and Skanco in a deal that had been months in the planning.

’I recognise and appreciate the many years of hard work invested by the Skanco board, shareholders and staff to create and develop the business, building a long-standing customer base and respected reputation.

’As we are reminded on a regular basis, corporate consolidation in the technology market is happening at all levels as the major players globalise their services and solutions. The island needs strong local businesses with the scale to compete and this deal provides this platform.’

While both companies offered business technologies, the service bias had, over the years, been different; with Skanco leading primarily in IT and disaster recovery, and Argon offering these services, together with being a leading supplier of managed print solutions and data cabling.

Mr Fairbairn said it provides a strong island head office from which to develop the exporting of services to the UK and internationally, particularly through dedicated cloud, cyber security and managed print services.