Liverpool-headquartered managed IT services provider SysGroup has bought Edinburgh-based cybersecurity firm Truststream in a deal worth up to £8.5m.
The deal comprises 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 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,” said Adam Binks (pictured), CEO of SysGroup. “The business strongly complements our existing portfolio of services and has high levels of recurring revenue. I’m excited to welcome the Truststream team and look forward to working with them all as part of the enlarged group.”
SysGroup said Truststream’s comprehensive security offering will significantly enhance the firm’s service offering.
Truststream’s existing team will also enable the group to further strengthen its UK presence and extend its reach into Scotland.
SysGroup’s recent investments in business systems and infrastructure mean that Truststream’s services should be quickly integrated into its business intelligence platform, the firm said.
“We’ve experienced rapid growth over the last few years, as organisations of all sizes and sectors demand comprehensive cyber security solutions,” added Paul Sullivan, co-founder at Truststream. “SysGroup’s impressive reach and forward-thinking use of technology makes this a perfect match.”
The deal marks the latest in several acquisitions made by SysGroup, including Certus IT for £8m in February 2019 and Hub Network Services for £1.45m in June 2019. The firm also acquired Telford-based Rockford IT in 2018, expanding its market reach in vertical sectors, such as hotels and leisure.