SysGroup PLC Acquisition of Hub Network Services Limited (1076D)
June 24 2019 - 2:00AM
UK Regulatory
TIDMSYS
RNS Number : 1076D
SysGroup PLC
24 June 2019
24 June 2019
SysGroup plc
("SysGroup" or the "Company" or the "Group")
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 ("HNS"), a well-established B2B managed services
provider with a primary focus on delivering fast, low latency
network connectivity and co-location solutions (the "Acquisition").
The Board expects the acquisition to be immediately earnings
enhancing.
The total consideration for the Acquisition is GBP1.45m 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 GBP1.84m and GBP0.22m
respectively, with revenue increasing 45% since 2016. Gross assets
as at 31 October 2018 stood at GBP0.8 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."
For further information please contact: Tel: 0151 559 1777
SysGroup plc
Adam Binks, CEO
Martin Audcent, CFO
Shore Capital (Nomad and Broker) Tel: 020 7408 4090
Edward Mansfield / Daniel Bush / Anita Ghanekar
Alma PR (Financial PR) Tel: 020 3405 0205
Josh Royston / Hilary Buchanan / Helena Bogle
About SysGroup
SysGroup is a leading provider of Managed IT Services, Cloud
Hosting, and expert IT Consultancy. The Group delivers solutions
that enable clients to understand and benefit from industry leading
technologies and advanced hosting capabilities. SysGroup focuses on
a customer's strategic and operational requirements - enabling
clients to free up resources, grow their core business and avoid
the distractions and complexity of delivering IT services.
The Group has offices in Liverpool, Coventry, London, Telford,
Newport & Bristol.
For more information, visit http://www.sysgroupplc.com
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END
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