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SysGroup picking up Certus IT
Posted on Thursday, 07 February 2019 15:46
SysGroup has signed on the dotted line to pick up Certus IT, a provider of cloud hosting and managed information technology (IT) services.
Under the terms of the transaction, the buyer will pay an initial sum of GBP 8.00 million in cash on a debt- and cash-free basis for the business.
An additional earn-out of GBP 1.00 million will be due at a later date, depending on certain criteria relating to the target’s financial performance being achieved in the year following completion.
Commenting on the purchase, SysGroup chief executive Adam Binks said: “The addition of Certus to the Group represents a step-change in terms of the scale of the business, and we believe the enlarged Group will be better positioned to penetrate our target market and drive further growth.”
Closing of the acquisition is expected to occur by 26th February.
SysGroup has also announced a share placing, comprising some 26.32 million stocks at GBP 0.38 each to raise a conditional amount of GBP 10.00 million, before expenses.
Proceeds from this capital increase will be used to finance the acquisition.
Certus was founded in 2000 and now claims to be one of the largest IT managed services providers covering the UK.
The company’s client base includes goCompare.com, Comic Relief and the Welsh Rugby Union.
According to Zephyr, the M&A database published by Bureau van Dijk, 2018 saw 909 deals worth a combined USD 25.39 billion targeting computer systems design services providers announced worldwide.
In terms of volume, this represents a decline on the 988 deals signed off in 2017, while value actually increased from USD 13.19 billion over the same timeframe.
2018’s largest deal in the sector was worth USD 9.70 billion as Red Hawk Enterprises picked up US-headquartered CSRA.
Other companies in this area to have been targeted over the 12 months include Tata Consultancy Services, Beijing SenseTime Technology Development and KMD Holding.
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