SysGroup PLC – Acquisition of Hub Network Services Limited
SysGroup PLC (AIM:SYS), the multi award-winning managed IT services and cloud hosting provider is pleased to announce that it has today acquired 100% of the issued share capital of Hub Network Services Limited, a well-established B2B managed services provider with a primary focus on delivering fast, low latency network connectivity and co-location solutions. The Board expects the acquisition to be immediately earnings enhancing.
The total consideration for the Acquisition is £1.45m in cash (on a cash-free/debt-free basis with normalised working capital) settled in full on completion. The Acquisition has been financed from the Group’s existing cash resources. The existing management of HNS will remain with the Group for a period of three months to facilitate a handover of day to day operations.
Information on HNS
Established in 1997, Bristol-based, HNS provides managed connectivity and co-location solutions to approximately 120 customers on both a direct and in-direct basis. Customers typically contract for 36-month periods with HNS providing security and visibility of forward-looking revenue. HNS’s core network infrastructure coupled with its supply agreements with multiple UK network operators will provide material benefits to the enlarged Group; broadening our service offering as well as providing cost synergies. This will further enhance our managed service solutions proposition to our customers.
For the financial year ended 31 October 2018, HNS delivered revenue and profit before tax of £1.84m and £0.22m respectively, with revenue increasing 45% since 2016. Gross assets as at 31 October 2018 stood at £0.8 million.
Adam Binks, Chief Executive Officer commented:
“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 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.“