IT managed services provider Redcentric PLC today announced the official acquisition of Edinburgh-based IT security testing firm 7 Elements in a deal that could rise to a total of $2.4 million.

A CREST accredited and award-winning business, Edinburgh-based 7 Elements provides security testing, incident response management and managed vulnerability scanning across the UK.

Peter Brotherton, CEO of Redcentric, commented: “I am pleased to welcome 7 Elements to the Redcentric group and I am really excited about the skills, capabilities and services that this acquisition gives us, significantly enhancing the Redcentric portfolio.

“We acquired additional capability in the increasingly important security market as part of the recent Piksel acquisition, and the 7 Elements acquisition further enables us to improve and enhance our offering so that we are now able to offer a complete portfolio of security services to our customers.

“We look forward to working with our customers to help ensure that they are secure.’’

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Although now a part of the Redcentric group, 7 Elements will continue to operate as a standalone business, led by founder David Stubley.

The acquisition seeks to expand upon the cybersecurity skills, capabilities and services of Redcentric, addressing increasing market demand and customer requirements for security products and support with all of 7 Elements services available immediately to customers.

Under the terms of the agreement, a fee of £1.95 million was paid in cash on completion, with a further earnout payable in cash based on the future performance of the business over the next 13 months. The maximum potential consideration payable is £2.4 million.

Redcentric added that 7 Elements has annualised revenues of roughly £1m and underlying earnings of approximately £300,000.

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