RedstoneConnect swoops on MSP Commensus

£2.4m deal values London-based Commensus at seven times EBITDA

RedstoneConnect has made its second acquisition of the year - in the form of managed services provider Commensus - as it continues to reshape its business.

Following on from its purchase of software developer Connect IB in March, the integrator has snapped up London-based Commensus for £2.4m.

That values Commensus at 7.1 times its EBITDA, which stood at £338,000 last year.

Since the arrival of new management last year, AIM-listed RedstoneConnect has sold off its loss-making telecoms business, refocused on its core smart buildings market and rebranded itself from Coms.

It said the latest acquisition will enable it to offer a cloud-hosted IT services solution alongside its existing ‘on-the-ground' managed IT services.

"RedstoneConnect has undertaken a significant shift in both strategic and operational direction over the last 12 months and the acquisition of Commensus is further evidence of our ambitions to deliver compelling service solutions across our client base," said RedstoneConnect CEO Mark Braund.

In its financial year ending 31 December 2015, Commensus saw operating profit fall from £254,000 to £137,000 on sales that fell slightly to £3.2m.

As part of the deal, Commensus senior managers Kevin London and Alex Parker have been issued £147,710 worth of RedstoneConnect stock, which will be subject to lock up for 24 months.