LONDON, UK: SysGroup plc (AIM:SYS) announced the acquisition of 100% of the issued share capital of Truststream Security Solutions Limited, a leading provider of managed cyber security services based in Edinburgh.

The acquisition has been funded from the Group’s existing cash resources supported by a new revolving credit facility provided by Santander.

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 £4.8m in cash and a further deferred cash earn-out consideration payable following the first and second anniversary of the transaction of up to £3.075m, 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 Plc team for a minimum period of two years.

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.

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.”

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.

SysGroup Plc 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. www.sysgroup.com