UK-based managed IT and cloud hosting provider SysGroup PLC has completed its second acquisition of 2019.
The company has purchased Bristol, England’s Hub Network Services Ltd (HNS), a business-to-business (B2B) MSP for approximately US$1.8 million (GBP1.5 million) in cash.
The deal is expected to immediately deliver enhanced earnings, according to SysGroup, which previously acquired Certus IT Limited, a managed IT services provider and Dell EMC partner in February.
This latest deal was financed from the IT services provider’s existing cash resources, it said. Hub Network’s management team will remain with the company for three months to facilitate the handover of day-to-day operations, according to Alliance News.
HNS has been operating since 1997. The managed connectivity and colocation solutions provider serves some of the UK’s most well-known brands including Welsh Audit Office and Samaritans. The company’s network infrastructure, supply agreements, and industry experience will be used to expand SysGroup’s existing managed IT and cloud hosting offerings, SysGroup commented.
Adam Binks, CEO, SysGroup said of the deal:
“I am thrilled to have made our second acquisition of the year and look forward to working with the HNS team in due course. The acquisition of HNS further complements our existing managed services, enabling us to offer our customer base an even wider range of enterprise-grade managed connectivity services alongside our existing managed IT services portfolio.”
SysGroup’s customers, including those who have migrated over from HNS’ portfolio, will continue to receive service and support, Binks added.
Prior to this year, SysGroup also acquired Rockford and System Professional. The company’s war chest includes £10.0 million from the capital markets, and a £5.0 million banking facility.