Liverpool's SysGroup to buy Certus IT for up to £9m
Liverpool’s SysGroup, the managed IT services and cloud hosting provider, has agreed to buy Certus IT Limited for an initial consideration £8m.
Certus is based in Newport, South Wales, and also provides managed IT and cloud hosting. The price paid could increase to a maximum cash consideration of £9m depending on the performance of Certus in the 12 months following completion.
Publicly-listed SysGroup has also secured an additional £10m in funding to continue its M&A drive, on top of a new £5m banking facility. The latest acquisition is the firm's seventh in the last five years.
SysGroup said the acquisition would “help to bolster the Group’s existing managed service offerings, significantly adding to its managed connectivity portfolio and further strengthening the existing relationship with Dell EMC.”
CEO Adam Binks added: "I am delighted to be welcoming both the Certus IT team and its customers to the SysGroup family. The addition of Certus IT to the group represents a step change regarding the scale of the business, better positioning SysGroup to penetrate our target market and drive further growth.
"This acquisition fits within our strategy of growing the business organically and through strategic acquisitions, and we are excited by the prospects that lie ahead."
SysGroup reported revenue of £10.5m in its last financial year, while Newport-based Certus files small company accounts.