Based in Liverpool, AIM-listed SysGroup provides IT and cloud computing services across the UK and has acquired tech security company Truststream in a deal worth up to £8m. Tony McDonough reports
Liverpool IT services, cyber security and cloud hosting firm SysGroup has announced a new acquisition worth up to £8m.
AIM-listed SysGroup has bought Truststream Security Solutions, a provider of managed cyber security services based in Edinburgh. It is paying £4.8m up front for the business rising by a further £3.075m over a 24-month period.
SysGroup says the deal enhances its service offering, from threat analysis to detection and incident response. The 10-strong existing Truststream team will enable the group to further strengthen its UK presence and will introduce a reach into Scotland.
It has funded the acquisition from existing cash resources, supported by an £8m revolving credit facility provided by Santander. The business, based in Exchange Flags in Liverpool city centre, has acquired a number of businesses in recent years. They include Certus IT for £8m and Hub Network Services for £1.45m, both in 2019.
SysGroup’s has appointed Manchester-based independent financial services group, Zeus, as its new nominated advisor and broker, supporting the business on its mergers and acquisitions strategy.
SysGroup chief executive Adam Binks said: “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, cyber security 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.”
Paul Sullivan, co-founder at Truststream, added: “We’ve experienced rapid growth over the last few years, as organisations of all sizes and sectors demand comprehensive cyber security solutions. SysGroup’s impressive reach and forward-thinking use of technology makes this a perfect match, and a natural next step for Truststream.”