SysGroup on acquisition trail after landing cyber consultancy

Liverpool-based listed tech business SysGroup has acquired the trade and assets of Crossword Consulting Limited (CCL), the consulting arm of Crossword Cybersecurity plc.

SysGroup, listed on AIM, paid an initial £311,000 for Crossword, with a potential post conditional payment of £127,000. Based in London, CCL is active in cybersecurity consulting, offers specialised services such Penetration Testing to medium and large enterprises.

This deal gives SysGroup 12 seasoned cybersecurity consultants and what it describes as “a diverse client base of customers”, including FTSE 100, FTSE 250, and S&P-listed companies, which presents new cross-selling opportunities for other parts of the business.

Heejae Chae, Executive Chairman hinted that the business is in the market for further deals, following an £11m equity raise in June 2024. 

“Our strong balance sheet positions us to effectively pursue strategic acquisitions such as CCL,” he said.  

For the 12 months ending 30 September 2024, CCL delivered unaudited revenues of circa £2.4 million with more than 75% of revenues recurring. 

Heejae Chae, Executive Chairman commented: “This acquisition strengthens our strategy to become the partner of choice in our customers’ AI journey and digital transformation by enhancing our cybersecurity capabilities and expanding into Compliance as a Service (“CaaS”). 

“Crossword Consulting’s expertise ensures that we can secure critical infrastructure, data, and processes – essential components for the successful adoption and scaling of AI. Their services, including Cyber Maturity Assessments and vCISO solutions, provide the compliance and risk mitigation needed to build trust in data-driven systems. By integrating these capabilities, we position ourselves to deliver comprehensive, secure, and innovative solutions that empower our customers to confidently embrace AI and drive their transformation agendas,” Chae added.

SysGroup expects to publish its half year results for the six-month period ended 30 September 2024 on 3 December 2024 and expects results to be “consistent with the prior year” when the business posted revenues of £10.96m, a decrease of 3% from £11.32m. 

“We are actively engaged in discussions regarding a number of high-potential contracts with both new and existing customers, which could unlock significant growth opportunities and drive revenue beyond our recurring base,” Chase added.