mhance buys CPS & City Dynamics to expand Microsoft reach

mhance has acquired CPS and City Dynamics, expanding the Microsoft-focused group's presence across several UK industry sectors.

The acquisitions bring together three organisations focused on Microsoft products and services. The enlarged group will cover Microsoft Business Solutions, Copilot, Modern Work, Data and Portfolio Management, while extending its reach in public, financial and professional services.

mhance already operates across not-for-profit, construction, distribution and manufacturing. City Dynamics adds expertise in financial technology transformation and Microsoft Dynamics 365 Business Central, particularly for financial and professional services organisations. CPS brings capabilities in AI and Copilot, Dynamics 365, Modern Work and Portfolio Management.

CPS employs 100 staff and supports about 250 public and commercial sector customers in the UK. Based in Reading, it has more than 30 years of experience in Microsoft services.

Under the integration plan, former CPS Chief Executive Officer Stephen Adams will join the mhance management team as Chief Integration Officer. Existing customer contracts and support arrangements will remain unchanged.

mhance operates from offices in London, Manchester and Dublin. It holds all six Microsoft Solutions Partner designations: Business Applications, Data and AI, Digital and App Innovation, Infrastructure, Modern Work and Security.

Deal rationale

The transactions are intended to broaden technical coverage across customers' core business systems and workplace tools. They also add sector depth in areas where Microsoft software spending has remained active, including financial and professional services.

Chief Executive Officer Chris Allan said: "These acquisitions are a hugely important step in mhance's development.

"CPS has built one of the strongest Copilot and agent practices in the Microsoft ecosystem, while City Dynamics brings deep expertise in financial services and Microsoft Dynamics 365 Business Central. Combined with mhance's existing Dynamics 365 capabilities, these businesses enable us to support customers from their core systems through to measurable AI outcomes within one Microsoft-focused group.

"For customers, this creates access to broader expertise across Business Solutions, Data, Copilot and Modern Work through one Microsoft-focused group. Our priority is to deliver greater value from their Microsoft investments while maintaining continuity throughout the integration."

Executive Chairman Julian Stone said the deals marked a significant point in the company's development.

CPS role

CPS has built a profile in Microsoft's Copilot market. It is a Copilot Jumpstart Priority partner and was a worldwide finalist for Microsoft's 2025 Copilot & Agent Partner of the Year.

From CPS's perspective, Chief Executive Officer Stephen Adams said: "Joining mhance marks an exciting new chapter for CPS. We have found a partner that shares our ambition, our values, and our focus on helping customers achieve meaningful outcomes from their Microsoft investments.

"Joining mhance gives us the opportunity to take that experience further by combining our expertise with mhance's wider capabilities and scale.

"This is a positive step for our customers and people, bringing greater capability and innovation while building on the trusted relationships developed over many years."

City Dynamics

City Dynamics focuses on Microsoft business applications, with particular strength in Business Central projects for financial and professional services customers. That makes it a complementary fit with mhance's existing Dynamics 365 work and CPS's workplace and AI-related services.

Chief Executive Officer Haseet Sanghrajka said: "I'm immensely proud of what our team has built. Joining mhance is a natural next step that will provide greater scale and opportunity for our clients and people, and I'm excited about what we will achieve together."