SysGroup expands UK footprint with acquisition of Scottish IT firm
Liverpool-headquartered SysGroup has expanded its presence in the UK with the acquisition of Truststream Security Solutions in Edinburgh for £4.8m.
SysGroup, an IT managed services and cloud hosting provider, has paid for the deal from its existing cash balance and a new revolving credit facility of £8m from Santander.
Established in 2011, fast growing Truststream is a provider of professional and managed cyber security services with a turnover of £3.2m for its latest financial year.
The 10-strong existing Truststream team will enable the group to further strengthen its UK presence and will introduce a reach in to Scotland.
This news follows SysGroup’s appointment of Manchester-based independent financial services group, Zeus, as its new Nominated Advisor and Broker, supporting the business on its M&A strategy.
Adam Binks, CEO at SysGroup, said: “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.”
Paul Sullivan, co-founder at Truststream, added: “We’ve experienced rapid growth over the last few years, as organisations of all sizes and sectors demand comprehensive cyber security solutions. SysGroup’s impressive reach and forward-thinking use of technology makes this a perfect match, and a natural next step for Truststream.”
The company has already made a number of significant acquisitions in recent years, including Certus IT for £8m in February 2019 and Hub Network Services for £1.45m in June 2019. The business also acquired Telford-based Rockford IT in 2018, expanding its market reach in vertical sectors, such as hotels and leisure.
