Liverpool-headquartered SysGroup is looking for Scottish action with the purchase of Truststream Security Solutions in a deal worth up to £8.5 million.
SysGroup, a managed IT services, cybersecurity and cloud hosting provider, says the deal is for an initial cash consideration of £4.8 million with a maximum earn-out consideration of up to £3.075 million over a 24-month period. The acquisition has been funded from the group’s existing cash resources, supported by an £8 million revolving credit facility provided by Santander.
The ten-strong existing Truststream team, based in Edinburgh, will join SysGroup.
According to SysGroup, Truststream’s security offering gives it a boost in terms of threat analysis, detection and incident response. On Truststream’s website there are two testimonials – from Virgin Money and Edinburgh College.
Adam Binks, CEO, SysGroup, comments: “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.”
According to SysGroup’s website, clients include Admiral, AXA, Confused.com, Holiday Inn, PwC and Sega.
The tech acquisition 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 acquisitions in recent years, including Certus IT for £8 million in February 2019 and Hub Network Services for £1.45 million in June 2019. The business also acquired Telford-based Rockford IT in 2018, as it searched for action amongst the hotel and leisure sectors.
SysGroup has offices in Liverpool, Manchester, London, Newport and Telford. It was founded in 2006.