IT transformation business acquired for £9.5m
Harrogate-based IT managed services provider, Redcentric, has acquired Piksel Industry Solutions Limited (Piksel IS) for $13m/£9.5m.
Piksel IS is a provider of IT modernisation and digital transformation services, focusing on public cloud.
It also delivers security and IT managed services, and has a strong application development and DevOps capability.
Based in York and London, Piksel IS has 93 employees. Its managed IT services are provided across a broad range of industry verticals, with a particular focus on Amazon Web Services and Microsoft Azure.
Funds for the acquisition are coming from Redcentric’s existing cash resources and the acquired business is expected to generate annualised revenues of £10m and EBITDA of £0.4m.
The deal should significantly enhance Redcentric’s service offerings in both public cloud and security and annualised synergies of at least £1.1m are anticipated.
Peter Brotherton, chief executive officer at Redcentric, said: “This is an extremely exciting strategic acquisition for us and combines the secure, asset light, digital transformation capabilities of Piksel IS with the managed infrastructure, unified communications and connectivity solutions of Redcentric.
“We are delighted that the combined portfolio will accelerate our ability to deliver industry leading, transformative solutions to our customers and expands our capabilities in hyperscale public cloud and security.”
Paul Mardling, managing director at Piksel Industry Solutions, added: “We are looking forward to being part of Redcentric.
“The combined expertise of Redcentric and Piksel IS will bring benefits to both our customers and people.
“We are now part of a successful larger group and that will help us capitalise on the growing and substantial market for advanced cloud services, networks and cyber security.”
