TIDMSYS
RNS Number : 2284H
SysGroup PLC
05 April 2022
The information contained within this announcement is deemed by
the company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of the
domestic law of the United Kingdom by virtue of the European Union
(Withdrawal) Act 2018 (as amended) ("UK MAR"). Upon the publication
of this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
5 April 2022
SysGroup plc
("SysGroup" or the "Company" or the "Group")
Acquisition of Truststream Security Solutions Limited
New Banking Facilities
SysGroup plc (AIM:SYS), the multi award-winning m anaged IT
services, cyber security and cloud hosting provider , is pleased to
announce the acquisition of 100% of the issued share capital of
Truststream Security Solutions Limited ("Truststream"), a leading
provider of managed cyber security services based in Edinburgh
("the Acquisition"). The Acquisition has been funded from the
Group's existing cash resources supported by a new revolving credit
facility provided by Santander.
Highlights
-- Acquisition of Truststream, a fast growing provider of
managed cyber security services based in Edinburgh, for an initial
cash consideration of GBP4.8m and a maximum earn out consideration
of up to GBP3.075m over a 24 month period.
o Truststream generated unaudited revenues of GBP3.2m and EBITDA
of GBP0.8m in the year to 30 September 2021.
-- The Acquisition will be funded from the Group's existing cash
balance and a new revolving credit facility of GBP8.0m, further
details of which are set out below.
-- The Acquisition further enhances SysGroup's service offering
and is complementary to the Group's core expertise and key areas of
focus. In addition, the Acquisition will enable the Group to
further strengthen its UK presence by opening up Scotland as an
attractive hub for the Group.
-- Recent investments in SysGroup's business systems and
infrastructure are expected to enable Truststream to be integrated
seamlessly into our single pane of glass business intelligence
platform.
-- The Acquisition is expected to be immediately earnings enhancing.
Acquisition
Information on Truststream
Established in 2011, Truststream is one of the UK's fastest
growing providers of professional and managed cyber security
services. The global managed security services market is forecast
to grow by a CAGR of 7.9% through to 2027(*) . Truststream has a
strong and growing client base across both the private and public
sectors and is one of the UK's leading providers of security
transformation services. Its offering covers all aspects of cyber
security from analysis and threat detection, through protection
architecture and implementation, to incident response and ongoing
24/7 support and training. Truststream has built long term
sustainable relationships with key vendors and is identified as a
leading partner of choice for market leading vendors by Gartner.
Truststream has a number of relevant security accreditations,
including ISO 9001 and ISO 27001.
In the year ended 30 September 2021, Truststream generated
unaudited revenues of GBP3.2m (an increase of 61% year-on-year),
EBITDA of GBP0.8m (an increase of 128% year-on-year) and profits
before tax of GBP0.8m. Truststream enjoys high levels of recurring
revenue which is supported by solid customer and vendor
relationships; in its year ended 30 September 2021, Managed IT
services comprised 63% of total revenues. Its net assets at 30
September 2021 were GBP0.4m.
The Company believes that there are significant cross selling
opportunities between the client bases of both SysGroup and
Truststream and that the expanded service offering will present an
attractive proposition for both existing and prospective
clients.
Acquisition terms
SysGroup has agreed to acquire 100% of the issued share capital
of Truststream from Paul Sullivan, Bryan Thomson and others on a
cash-free debt-free basis for an initial consideration of GBP4.8m
in cash and a further deferred cash earn-out consideration payable
following the first and second anniversary of the transaction of up
to GBP3.075m, subject to the achievement of certain maintainable
EBITDA performance targets in the first and second 12 month periods
following the completion of the acquisition. Paul and Bryan will
continue in their current roles as part of the wider SysGroup team
for a minimum period of two years.
New Banking Facilities
The Company has re-financed its existing term loan facility of
GBP1.75m and its undrawn acquisition revolving credit facility of
GBP3.25m and replaced both with a new GBP8.0m revolving credit
facility with Santander to provide additional financial flexibility
for the Group. The new banking facility has a term of five years
with covenants that will be tested quarterly relating to total net
debt to Adjusted EBITDA leverage and minimum liquidity. The Group
has drawn down GBP4.5m against the new facility towards the funding
of the Truststream Acquisition.
Adam Binks, Chief Executive Officer, commented:
"I am delighted to announce the acquisition of Truststream. 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.
Our investment in the Group's systems and infrastructure over
the last few years means that we have the platform in place to be
able to scale SysGroup and will continue to identify further
complimentary acquisition opportunities in line with our stated
strategy.
I'm excited to welcome the Truststream team and look forward to
working with them all as part of the enlarged Group."
*Source - "Managed Security Services Market Outlook to 2025:
Global Report" by Research and Markets
For further information please
contact:
Tel: 0151 559
SysGroup plc 1777
Adam Binks, Chief Executive
Officer
Martin Audcent, Chief Financial
Officer
Zeus (Nomad and Broker) Tel: 0161 831
Dan Bate 1512
James Edis
Alma PR (Financial PR) Tel: 07780 901
Josh Royston 979
Matthew Young
About SysGroup
SysGroup is a leading provider of managed IT services, cloud
hosting, cyber security and expert IT consultancy. The Group
delivers solutions that enable clients to benefit from industry
leading technologies and delivers managed solutions with security,
compliance and governance from the core. SysGroup focuses on a
customer's strategic and operational requirements - enabling
clients to free up resources, grow their core business and avoid
the distractions and complexity of managing IT services.
The Group has offices in Edinburgh, Liverpool, London,
Manchester, Newport and Telford.
For more information, visit http://www.sysgroup.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQUSVWRUUUSRAR
(END) Dow Jones Newswires
April 05, 2022 02:00 ET (06:00 GMT)
SysGroup (AQSE:SYS.GB)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
SysGroup (AQSE:SYS.GB)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024