Shares in Bytes Technology Group plc dropped 5% today after it announced a £19 million acquisition.
However the FTSE 250 firm’s market cap remains above £1 billion – and 45% up in last six months – after it also posted positive half-year results.
The software, security, AI and cloud services specialist said it had acquired CyberOne, a UK cybersecurity services provider to enterprise and the mid-market, for an initial consideration of £19.4m.
CyberOne, founded in 2005, has established a strong position within the Microsoft security ecosystem, including recognition as a Microsoft Security Elite Partner and membership of the Microsoft Intelligent Security Association.
The business is headquartered in London, with over 80 employees across the UK and the Philippines. It delivered high double-digit revenue growth in the 12 months ended 31st July 2026, generating revenue of £9.5m alongside expanding gross profit margins.
The initial acquisition consideration has been funded entirely from existing cash resources, with further contingent cash payments over the next 16 months depending on performance.
CyberOne’s leadership team will join BTG and, initially, continue to operate the business as a standalone unit, working closely with BTG’s sales teams.
“CyberOne is a strong strategic fit for BTG, enhancing our capabilities in a rapidly growing technology segment and supporting growing customer demand for cyber security services,” said Sam Mudd, BTG CEO.
“The acquisition combines a proven managed security platform and a growing base of high-margin recurring revenue with BTG’s existing scale and customer reach. We are delighted to welcome the CyberOne team to BTG and look forward to combining our complementary strengths to deliver greater value for customers and shareholders.”
This morning BTG also reported its financials for the six months ended 31st August 2026. It grew revenue 18.7% to £128.3m, with operating profit climbing 6.6% to £35.3m.
Seven months ago BTG saw its share price drop as low as 253p after a disappointing trading update and the departure of MD Jack Watson after two decades ‘by mutual consent’.
The firm had suffered a turbulent two years, which in 2024 began investigating the shock resignation of its former CEO Neil Murphy after he was accused of unauthorised trading in the company’s shares.
The investigation ultimately found 119 unauthorised transactions on 66 trading days between January 2021 and November 2023 which sent the London-listed stock plummeting.
The firm rebounded under new CEO Mudd before the blip earlier this year – and is now moving in the right direction again despite today’s drop in share price.
“We are very pleased the changes we made to the business last year are evident in our performance,” said Mudd. “We upgraded our expectations for the full year in September.
“Over the last two years we have deliberately evolved BTG from a licensing-led reseller into a customer-centric, solutions and services-led business. Our strategy is a simple one: win more customers, grow our share of wallet with the customers we already have, and build higher-value recurring services.
“As AI, cybersecurity and cloud adoption accelerate, it is that combination of trusted advice, technical depth and managed services that allows us to take a greater share of our customers’ technology spend.”
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