AIM-listed Redcentric has acquired fellow MSP Piksel Industry Solutions for around £9.5m in cash.
Piksel is a provider of IT modernisation and digital transformation services, focusing on public cloud delivery. It also provides security and IT managed services and is said to have a strong application development and DevOps capability.
Based in York, North Yorkshire and London, Piksel has 93 staff, and its managed IT services are provided across a broad range of industry verticals, with a particular focus on Amazon Web Services and Microsoft Azure cloud delivery.
“This strategically important acquisition delivers on the board's stated strategy to assist growth through acquisitions,” said Redcentric in a release. “It gives us leading-edge skills and capabilities in public cloud and security to enable us to immediately provide additional solutions to an enlarged customer base.”
The acquired business is expected to generate annualised revenues of £10m and an EBITDA of £400,000.
“This acquisition combines the secure, asset light, digital transformation capabilities of Piksel with the managed infrastructure, unified communications and connectivity solutions of Redcentric,” said Redcentric CEO Peter Brotherton. “It will accelerate the group's ability to deliver transformative solutions and expand its capabilities in hyperscale public cloud and security.”
Paul Mardling, MD of Piksel, added: “We are now part of a successful larger group and that will help us capitalise on the growing and substantial market for advanced cloud services, networks and cyber security.”
Last year, Redcentric was for sale, but the board reversed that move when no attractive offers came in.