SysGroup acquires Truststream for up to £7.9m

The acquisition is for an initial consideration of £4.8m and a maximum earn out consideration of up to £3.075m

The SysGroup has struck a deal to acquire Truststream Security Solutions for more than £4m.

The IT services, cyber security and cloud hosting provider has agreed to acquire 100 per cent of the issued share capital of Truststream on a cash-free debt-free basis.

The acquisition is for an initial consideration of £4.8m and a maximum earn out consideration of up to £3.075m over a 24-month period.

It will be funded from SysGroup's existing cash balance and a new revolving credit facility of £8m provided by Santander.

This comes after the company re-financed its existing term loan facility of £1.75m and its undrawn acquisition revolving credit facility of £3.25m.

Truststream is a provider of security transformation services and its offering covers all aspects of cyber security from analysis and threat detection, through protection architecture and implementation, to incident response and ongoing 24/7 support and training.

In the year to 30 September 2021, the Edinburgh-based company generated unaudited revenues of £3.2m and an EBITDA of £0.8m.

Adam Binks, chief executive officer at SysGroup, said: "I am delighted to announce the acquisition of Truststream. 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 backed by the highest quality of ongoing security, monitoring and support."

He added: "Our investment in the Group's systems and infrastructure over the last few years means that we have the platform in place to be able to scale SysGroup and will continue to identify further complimentary acquisition opportunities in line with our stated strategy.

"I'm excited to welcome the Truststream team and look forward to working with them all as part of the enlarged Group."