Managed services outfit System Professional has been acquired by Daily Internet for £3.9m.
East Sussex-based Sys-Pro began life in 2003 as a traditional reseller but claims its transition towards managed services is now complete. The firm partners with the likes of Cisco, HP and Microsoft and has 39 staff based in London and Hadlow Down.
Daily Internet is AIM listed and works in the managed hosting and cloud integration space.
The conditional agreement states the £3.9m price will be satisfied by £3.3m in cash and the issue of 975,000 extra shares. Once the deal closes, the new entity, which will be known as SysGroup, will have pro-forma revenue for FY16 of £10.02m.
Daily Internet's CEO Chris Evans said the move will help his company "better exploit the ongoing market shift towards cloud-delivered services".
Although "synergies" to reduce combined costs are expected, the firm does not plan to reduce its headcount, according to Sys-Pro's commercial director Wayne Emerson.
He told CRN that the deal will give both firms a new set of customers to approach.
"We are really excited about the synergies between our companies," he said. "One of the things that's really interesting for us is the level of accreditation and compliance their datacentre hosting has. They're one of the few organisations that have PCI-compliant hosting platforms, which gives them the capability to provide cloud services to a number of verticals which might traditionally not have been as prepared to accept it.
"For us, as an organisation which doesn't have that, that gives us the capability to talk to those customers which might not have naturally gone down that route. We think that is exciting.
"We think it will allow both parts of the group to move up the value chain and approach larger customers."
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