Redcentric acquires cybersecurity firm 7 Elements

MSP Redcentric will pay a maximum of £2.4m for the Edinburgh-based company

AIM-listed MSP Redcentric has acquired cybersecurity firm 7 Elements Limited for a sum of up to £2.4m.

Edinburgh-based 7 Elements provides security testing, incident response management and bespoke security consultancy services and is accredited by penetration testing body CREST.

The company has annualised revenues of circa £1m and an EBITDA of circa £300,000, with Redcentric claiming the move will "significantly enhance" its service portfolio with "additional capability within the increasingly important security market".

"I am delighted to welcome 7 Elements into the Redcentric family," Peter Brotherton, CEO of Redcentric, said.

"The addition of its services to Redcentric's existing DDOS, SIEM, managed WAF and information security consultancy services means we are now able to offer a complete portfolio of security services to our customers.

"I'm very much looking forward to working with David and the 7 Elements team to help ensure our customers are secure."

7 Elements will continue to operate as a standalone business under its former owner David Stubley, who established the business in 2010.

Under the terms of the agreement, a fee of £1.95m was paid in cash on completion as an initial consideration, with a further earn out payable in cash based on the future performance of the business over the next 13 months. The maximum potential consideration payable is £2.4m.

Last month, Redcentric said it was looking forward to making "positive progress in 2022 and beyond" after putting a 2016 accounting scandal behind it, following the news that two former finance directors had been convicted of making false financial statements.

The acquisition also follows that of AWS and Microsoft Azure partner Piksel last September - which the MSP said at the time would "significantly enhance" its public cloud and security offerings.