GLASGOW-based technology consultancy Targeting Innovation has been acquired by the Elevator business support organisation in a six-figure deal.

Elevator bought Targeting Innovation from the consultancy’s employees in a move it expects to help increase its impact in a key sector.

Elevator, which runs centres for entrepreneurship in Aberdeen and Dundee, said the acquisition would bolster its existing capabilities in the digital, technology and innovation spheres whilst increasing its national footprint.

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By combining the resources of both organisations, Elevator expects to be able to support larger digital and innovation-driven projects for existing and prospective companies.

Elevator chief executive Professor Gary McEwan said: “This acquisition is exciting for both parties, it is a huge opportunity to create building blocks to drive innovation forward across Scotland.

“The team brings a wealth of expertise in innovation and digital development, and during a time when many businesses are going through a period of transformation and change, our synergies will help individuals find the support they need to thrive.”

The acquisition was made months after Elevator was appointed by Glasgow City Council to help drive sustainable growth and to improve business start-up and survival rates.

In November it launched an accelerator programme focused on the creative sector in Glasgow with the aim of supporting high-potential start-ups.

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Mr McEwan said: “New business creation will likely play an important part in Scotland’s economic recovery in 2021 as we prepare for increased interest in self-employment.”

He noted: “There was an initial drop in start-up numbers not unexpectedly during lockdown from March 2020. This trend didn’t continue though and start up numbers have increased steadily since.”

The emergence of the shop local trend has created good opportunities for small businesses that can meet demand for produce. Elevator has seen a range of businesses diversify in terms of the services they offer and markets they serve. Many are exploring opportunities to sell online.

The organisation said it has advised 5,000 businesses amid the pandemic.

Targeting Innovation is led by software sector veteran Gorge Boag, who described the acquisition of the firm by Elevator as a landmark moment in its history.

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Targeting Innovation can trace its roots to the Services to Software organisation that was founded in 1993 by Scottish Enterprise and universities in the country, backed by funding from the European Union.

The consultancy moved into employee ownership in 2013.

Elevator was formed by economic development trusts in North East Scotland. It rebranded as Elevator in 2014.