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SysGroup expands UK presence with Truststream acquisition

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SysGroup has increased its UK presence with the acquisition of Truststream Security Solutions Limited (Truststream), a leading provider of managed cyber security services.

The Liverpool-headquartered managed IT services, cyber security and cloud hosting provider has acquired Truststream for an initial cash consideration of £4.8m with a maximum earn out consideration of up to £3.075m 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.

The 10-strong existing Truststream team, based in Edinburgh, will enable the group to further strengthen its UK presence and give SysGroup a base in Scotland. It already has offices in Liverpool, London, Manchester, Newport and Telford.

The news follows SysGroup’s appointment of Manchester-based independent financial services group, Zeus, as its new nominated advisor and broker, supporting the business on its M&A strategy.

Adam Binks, Chief Executive Officer 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.”

SysGroup’s most recent full-year numbers, for the 12 months ending March 31st 2021, saw revenue dip 7% to £18.13m, with adjusted EBITDA up 4% year-on-year to £2.91m.

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