Edinburgh IT firm Truststream Security Solutions bought for up to £8m by Sysgroup as it extends reach in Scotland
IT services provider Sysgroup has acquired Edinburghbased Truststream Security Solutions in a deal worth up to about £8 million.
Liverpool-headquartered Sysgroup said the ten-strong existing Truststream team would enable the group to further strengthen its UK presence and extend the firm’s reach into Scotland.
It has acquired the capital firm for an initial cash amount of £4.8m with a further earnout consideration being made over a 24-month period.
The acquisition has been funded from the group’s existing cash resources, supported by an £8m revolving credit facility provided by Santander.
Sysgroup said recent investments in business systems and infrastructure meant that Truststream’s services will be “quickly and seamlessly integrated” into its allin-one business intelligence platform, meaning both customer bases will have access to an enhanced service offering sooner.
News of the acquisition follows Sysgroup’s appoint
ment of Manchester-based independent financial services group Zeus as its new nominated advisor and broker, supporting the business on its merger and acquisition (M&A) strategy.
Adambinks,chiefexecutiveat Sysgroup,said:“theadditionof 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 endto-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.
“I’m excited to welcome the Truststream team and look forward to working with them all as part of the enlarged group,” he added.
Paul Sullivan, co-founder at Truststream, added: “Sysgroup’s impressive reach and forward-thinking use of technology makes this a perfect match, and a natural next step for Truststream.”