Edinburgh IT firm Truststream Security Solutions bought for up to £8 million

IT services provider SysGroup has acquired Edinburgh-based 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 earn-out 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.

Adam Binks, chief executive at SysGroup.

SysGroup said recent investments in business systems and infrastructure meant that Truststream’s services will be “quickly and seamlessly integrated” into its all-in-one business intelligence platform, meaning both customer bases will have access to an enhanced service offering sooner.

News of the acquisition follows SysGroup’s appointment 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.

Adam Binks, chief executive 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.

“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: “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.”

SysGroup has made a number of acquisitions in recent years, including Certus IT for £8m in February 2019 and Hub Network Services for £1.45m in June 2019.

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