BT has boosted its SME capabilities after it acquired UK-based IT services provider Lynx Technology, for £22 million in cash.

The deal is the second purchase for BT Business. Back in August it paid £24 million for Basilica Computing, which in its last fiscal year posted annual sales of £76 million.

BT Business is a division within BT Retail, and it focuses on the communications needs of SMEs in the UK by providing voice, broadband and IT services to more than 1.5 million SME customers.

UK-based Lynx is a well established company that was founded back in 1973. Last year it recorded annual sales of £47 million. It specialises in consulting and managed ICT services for the SME market.

Lynx is a Microsoft, Cisco, Symantec and Surf Control Gold Partner, and an HP Business Partner. It has more than 500 employees, including 200 field engineers, 50 consultants and 100 service, support and logistics staff.

“Both deals strengthened our skills in end-to-end IT solutions,” said a BT spokesman. “Lynx is particularly strong in managed service and consultancy. Basilica excels in designing, configuring and implementing IT solutions. These are both areas which BT wanted to strengthen.”

According to BT, both businesses are to remain separate entities for the time being and there are “no plans” for any staff reductions, with the “status quo to remain for customers and suppliers alike.”

“BT wanted to add to capabilities in the 50 to 1,000 employee area,” said BT explaining the rationale behind the deal. “This market is worth £5.3 billion per year.”

“Both Lynx and Basilica sit at the larger end of the 50 to 1,000 employee sector.”

"Lynx Technology is a very impressive IT services business, with a proven track record of understanding and meeting the needs of SMEs," said BT Business managing director Bill Murphy. “Their expertise complements that of Basilica Computing and combined with our existing operation will enable us to give our customers genuinely converged communication and IT solutions.”