Spain’s Telefónica Tech has acquired Glasgow-based digital transformation and data analytics company Incremental in a deal worth up to £175 million.

The deal will see Telefónica Tech UK&I increase the scale of its UK operations. In addition, acquiring Microsoft Partner Incremental means the company will grow its offerings of Microsoft technologies, including 16 Gold Competencies and 5 Advanced Specialisations.

By adding Incremental’s roughly 350 employees to its workforce, Telefónica Tech UK& will employ around 1,000 professionals, with the UK contributing almost a quarter of Telefónica Tech’s total workforce.

The deal’s value will include potential contingent payments linked to Incremental’s future performance.

Launched in 2016, Incremental Group has two key specialised business areas. It is one of the leading Microsoft Dynamics Partners in the UK and is also a major player in the data and analytics market. It has been a Microsoft Business Applications Inner Circle member for the past three years and is one of only two partners in EMEA on Microsoft’s Global Advisory Board for data analytics.

In addition to its Glasgow headquarters, Incremental has offices across the UK, including Aberdeen and London, along with an international in Bulgaria and India.

Current CEO at Incremental Group Neil Logan said: “I am immensely proud of what Incremental has achieved since our inception a little over five years ago. As we looked ahead to the next stage of our development, it was important that we secured Incremental the right support for the long term.

“Becoming part of Telefonica Tech propels us into the next phase of our journey and enables us to further scale the business, creating exciting opportunities for our people and our customers.”

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The addition of Incremental’s business applications, power apps, data analytics and management capabilities to Telefónica Tech UK&I’s cloud services portfolio will enable it to enhance the end-to-end cloud offering for mid-market, large enterprise, and government customers.

CEO of Telefónica Tech José Cerdán said: “We warmly welcome Incremental Group and are delighted that this acquisition enables us to strengthen our position as a leader in the UK market for IT services.

“We are now able to provide end-to-end Microsoft services, including digital transformation, managed services and data analytics, and achieve attractive cross-selling synergies with Telefónica Tech UK&I, complementing and positioning us as a leading Microsoft-focused company in the UK.”

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