Cloud hosting provider swoops in £1.45m acquisition
Liverpool-based cloud hosting firm SysGroup has swooped in a £1.45m acquisition.
The managed IT services and cloud hosting provider has acquired Bristol-based Hub Network Services, an established B2B managed services provider with a primary focus on delivering fast, low latency network connectivity and co-location solutions.
The SysGroup board expects the acquisition to be immediately earnings enhancing.
The total consideration is £1.45m in cash settled in full on completion.
The Acquisition has been financed from the group’s existing cash resources.
The existing management of HNS will remain with the group for a period of three months to facilitate a handover of day-to-day operations.
Established in 1997, HNS provides managed connectivity and co-location solutions to around 120 customers on both a direct and indirect basis.
Customers typically contract for 36-month periods with HNS providing security and visibility of forward-looking revenue.
HNS’s core network infrastructure, coupled with its supply agreements with multiple UK network operators, will provide material benefits to the enlarged group, broadening its service offering as well as providing cost synergies.
This will further enhance managed service solutions proposition to SysGroup customers.
For the financial year ended October 31, 2018, HNS delivered revenue and profit before tax of £1.84m and £220,000, respectively, with revenue increasing 45% since 2016. Gross assets as at October 31, 2018 stood at £800,000.
SysGroup chief executive Adam Binks saied: “I am thrilled to have made our second acquisition of the year and look forward to working with the HNS team in due course.
“The acquisition of HNS further complements our existing services, enabling us to offer our customer base an even wider range of enterprise-grade managed connectivity services alongside our existing managed IT services portfolio.”
In February this year the AIM-listed group acquired Certus IT, based in South Wales, for £9m.
