LONDON, UK: SysGroup plc (AIM:SYS) has bought 100% of the issued share capital of Independent Network Solutions Limited, which trades as Orchard Computers, a Bristol based managed IT service provider.
Bristol based Orchard has been in operation for over 30 years and has built a loyal customer base totalling over 120 active clients in 2021, largely in the South West of England. The average length of relationship amongst their 20 largest clients is 12 years, with no single customer representing more than 7% of total revenues.
Orchard represents customers across a broad range of sectors, covering both the private and public sectors. Its managed IT service offering mirrors that of SysGroup, providing high quality consulting services and building tailor made, vendor agnostic solutions, designed specifically to meet individual customer needs, followed by ongoing support. The Group believes that Orchard will further strengthen SysGroup’s presence in the South West of England with the addition of more than 20 team members joining the wider SysGroup team.
In the year ended 31 December 2021, Orchard generated revenues of £2.1m, EBITDA of £0.3m and profits before tax of £0.3m. Recurring revenues in 2021 accounted for 56% of total income. Its net assets at 31 December 2021 were £0.3m.
SysGroup has agreed to acquire 100% of the issued share capital of Orchard, on a cash-free debt-free basis for a consideration of £1.0m in cash. The vendors of Orchard, Ian Terry and Chris Patten, will remain with SysGroup for a minimum period of three months to assist with the handover of customer relationships and integration into the Group.
Adam Binks, Chief Executive Officer, commented: “I am thrilled to be announcing our second acquisition of the financial year. Orchard is a well-established, well-respected business with a loyal customer base in the South West of England and I am delighted that we have been able to bring this business into the Group.
“Our enhanced presence in the region will add even more value for the combined customer base and will create a raft of opportunity for all of our team members, including the addition of our 20 new colleagues from Orchard.”
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 Bristol, Edinburgh, Liverpool, London, Manchester, Newport and Telford.