24th Jun 2019 12:23
(Alliance News) - SysGroup PLC on Monday said it has bought Hub Network Services Ltd, a B2B managed services provider, for GBP1.5 million in cash.
The AIM-listed company said it expects the acquisition to be immediately earnings enhancing.
The transaction has been financed from the IT services provider's existing cash resources, it said. The existing management of Hub Network will remain with the company for a period of three months to facilitate a handover of day-to-day operations, SysGroup noted.
For the year to the end of October 2018, Hub Network delivered revenue and pretax profit GBP1.8 million and GBP220,000, respectively.
SysGroup believes that Hub Network's core network infrastructure coupled with its supply agreements with multiple UK network operators will provide material benefits to the enlarged company.
"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," said Chief Executive Adam Binks.
SysGroup shares were untraded on Monday, last closing at 38.50 pence each.
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