Pinnacle snaps up adept4

Acquisition is its fifth in four months

Pinnacle Technology Group has acquired cloud services provider adept4 for £5.5m.

The deal will see Pinnacle pay £4.5m immediately, plus a further £1m in January 2018, and is the latest in a string of transactions made by the transitioning firm.

Gavin Lyons (pictured), executive chairman at Pinnacle, said: "This is a pivotal moment for Pinnacle as it completes the turnaround of the business which we set out to do in January 2016.

"Having executed five acquisitions and three disposals in just over four months, we have moved from a loss-making company with liabilities to a sustainable operational platform with healthy gross profit margins and high recurring revenues.

"Our focus is now on the integration of our acquisitions so that we can scale the asset-light, IT-as-a-service proposition we have for UK SME business.

"Our strategy remains the same and we will continue to focus on growing the company organically and through acquisition."

An additional £1.5m could be paid at a later date, subject to performance criteria for 2017.

Founded in 2007, adept4 provides fully managed IT service contracts, cloud-based services, software support and development.

Last year the Warrington-based firm recorded revenue of £5m, with a profit before tax of £0.51m.

Earlier this month Pinnacle sold its comms support arm Pinnacle CDT, the largest part of its business, for £2.8m just two weeks after selling its security business RMS Managed Security for £1.

In March the services provider bought the remaining stake in reseller Accent Telecom North and disposed of its investment in VoIP firm Stripe 21 limited.