A Liverpool-headquartered IT services, cyber security and cloud hosting provider, whose clients include Home Bargains, Screwfix and Sega, has acquired an Edinburgh company in a deal worth up to £8.5m.
AIM-listed SysGroup has snapped up Truststream Security Solutions, a provider of managed cyber security services, in a deal funded from the group's existing cash resources and supported by a new £8m revolving credit facility provided by Santander.
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The company has been acquired for an initial cash consideration of £4.8m while the deal includes a maximum earn out consideration of up to £3.075m over a two-year period.
Established in 2011, Truststream generated unaudited revenues of £3.2m and pre-tax profits of £800,000 for the year to September 30, 2021.
SysGroup chief executive Adam Binks said: "I am delighted to announce the acquisition of Truststream.
"The addition of Truststream to the group further supports our stated strategy to become the leading provider of managed IT services to the UK mid-market. The business strongly complements our existing portfolio of services and has high levels of recurring revenue.
"In addition, cyber security remains a key priority for businesses of all sizes as threats become both more prevalent and more harmful.
"Our end-to-end offering means that we can help companies navigate the forever evolving technological landscape and provide best of breed solutions backed by the highest quality of ongoing security, monitoring and support.
"Our investment in the group's systems and infrastructure over the last few years means that we have the platform in place to be able to scale SysGroup and will continue to identify further complimentary acquisition opportunities in line with our stated strategy.
"I'm excited to welcome the Truststream team and look forward to working with them all as part of the enlarged group."
