BGF-backed technology group acquires £7m business

A TECHNOLOGY group with offices in Leeds and Liversedge has acquired a support business for £7m.

Pinnacle Technology Group has bought adept4, based in Cheshire.

An initial £4.5m consideration will be supplemented with considerations of £1.0m and £1.5m based on performance criteria over the coming two years.

A loan from the Business Growth Fund enabled the acquisition for adept4, which turned over £5.0m last year and reported EBITDA of £750,000.

Gavin Lyons, executive chairman of Pinnacle, commented:”This is a pivotal moment for Pinnacle as it completes the turnaround of the business which we set out to do in January 2016. Having executed five acquisitions and three disposals in just over four months we have moved from a loss making company with liabilities to a sustainable operational platform with healthy gross profit margins and high recurring revenues. Our focus is now on the integration of our acquisitions so that we can scale our asset light, ‘IT as a Service’ proposition we have for UK SME business.”

York-based Langleys Solicitors acted on behalf of the vendors, Peter Birkett, Steven Cosgrove and Paul Talbot of adept4), in relation to the sale to Pinnacle Technology Group.

Frazer Hall provided corporate finance advice to the vendors.

Christian Hunt, partner at Langleys Solicitors, said: “adept4 has established a reputation for providing a great service to its clients, and as such will provide an excellent fit with Pinnacle. We’ve been delighted to work with the shareholders of adept4 on this transaction.”

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