Edinburgh-based cybersecurity firm Truststream has been acquired in a deal worth up to £8.5 million.

SysGroup, a managed IT services, cybersecurity and cloud hosting provider based in Liverpool has acquired the firm for an initial cash consideration of £4.8 million, with a maximum earn out consideration of up to £3.075m over an additional 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.

In a statement, SysGroup said Truststream’s “comprehensive security offering” will significantly enhance the firm’s service offering.

The existing Truststream team will also enable SysGroup to expand UK operations and secure a presence in Scotland.

Commenting on the deal, SysGroup CEO Adam Binks said: “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. I’m excited to welcome the Truststream team and look forward to working with them all as part of the enlarged group.”

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Paul Sullivan, co-Founder at Truststream, added: “We’ve experienced rapid growth over the last few years, as organisations of all sizes and sectors demand comprehensive cyber security solutions.

“SysGroup’s impressive reach and forward-thinking use of technology makes this a perfect match, and a natural next step for Truststream.”

The deal marks the latest in a number of acquisitions by SysGroup, including Certus IT for £8m in February 2019 and Hub Network Services for £1.45m in June 2019.

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