Eir Business is to acquire Evros in a deal that values the IT services firm at €80m.
Evros provides a range of IT products including cloud, security and digital transformation services.
It has been operating since 1990 and has around 450 employees and contractors across offices in Dublin, Cork, Waterford and Auckland in New Zealand.
Eir said the deal will allow it to offer a broader products to business customers, in addition to its voice and broadband services.
"We felt we had huge strengths, especially in areas of telecoms like voice and data and networking, we've made big investments there obviously," said Eir Business managing director Martin Wells. "But if you look at the needs IT companies have it’s more moving towards cloud, security, managed services and It contracting.
"So really, to be successful in the market, you’ve got to have a balanced portfolio."
Mr Wells said he was confident that customers would be interested in getting many of their requirements met by a 'one-stop-shop’, like the one that Eir and Evros will be now able to offer.
He said that companies often find things becoming more complex as they add more services from different vendors, and so they would be happy to have everything handled by one firm - assuming they were also getting good value in the process.
Mr Wells also said there would be no need for cuts in either business as a result of the tie-up, as there was next to no overlap in what the two firms currently offer.
"It’s what we describe as an up-side business case... we both do separate things but very complementary when you put them together," he said. "This is where the market is moving, this is where the opportunity is, this is where the growth is.
"It’s not something that we see as a synergistic business case, it’s about growth and market share."
That included the maintenance of Evros' New Zealand office, which on the surface may seem to be far away from Eir’s core focus in Ireland.
"What Evros have been able to do there is get really high-end engineers to cover 24/7 managed service contracts," he said. "So the level of engineering skills to get people to work in Ireland for unsociable hours is very hard, so setting it up in Auckland it’s actually a very, very clever thing.
"So rather than being something that you might think wouldn’t be core, it’s actually a really critical part of the service that we provide to customers."
In recent months Eir has come under intense scrutiny over its poor customer service, which CEO Carolan Lennon said had slipped due to the pandemic.
Mr Wells reiterated the company’s apology over what had happened, though he said that business customers were probably not as badly affected as residential users.