London-listed SysGroup has acquired a managed cybersecurity services business in a deal worth up to £8.5 million.
Truststream Security Solutions, based in Edinburgh, has been snapped up to increase SysGroup’s presence across the UK.
The Liverpool-headquartered firm is a managed IT services, cybersecurity and cloud hosting provider.
The deal is for an initial cash consideration of £4.8m with a maximum earn out consideration of up to £3.075m over a 24-month period.
The acquisition has been funded from the group’s existing cash resources, supported by an £8m revolving credit facility provided by Santander.
The deal for a company with a 10-strong team will add threat analysis, detection and incident response to SysGroup’s offering.
SysGroup said recent investments in business systems and infrastructure mean that Truststream’s services will be quickly and seamlessly integrated into its all-in-one business intelligence platform, meaning both customer bases will have access to an enhanced service offering sooner.
This news follows SysGroup’s appointment of Manchester-based independent financial services group, Zeus, as its new nominated advisor and broker, supporting the business on its M&A strategy.
The company has already made a number of significant acquisitions in recent years, including Certus IT for £8m in February 2019 and Hub Network Services for £1.45m in June 2019. The business also acquired Telford-based Rockford IT in 2018, expanding its market reach in vertical sectors, such as hotels and leisure.
“I am delighted to announce the acquisition of Truststream,” said CEO Adam Binks. “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, cybersecurity 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.
“I’m excited to welcome the Truststream team and look forward to working with them all as part of the enlarged group.”
Paul Sullivan, co-founder at Truststream, commented: “We’ve experienced rapid growth over the last few years, as organisations of all sizes and sectors demand comprehensive cybersecurity solutions.
“SysGroup’s impressive reach and forward-thinking use of technology makes this a perfect match, and a natural next step for Truststream.”