LONDON (ShareCast) - (Sharecast News) - Cloud hosting provider SysGroup acquired B2B managed services outfit Hub Network Services on Monday for £1.45m on a cash-free/debt-free basis.
SysGroup financed the acquisition from its existing cash resources and expects it to be immediately earnings enhancing.

The AIM-listed firm also told investors that Hub's existing management would remain with the group for three months in order to facilitate a handover of day-to-day operations.

In its last trading year, Hub delivered revenues and pre-tax profits of £1.84m and £220,000, respectively, with revenue increasing 45% since 2016.

Chief executive Adam Binks said: "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."

As of 1020 BST, SysGroup shares were up 1.32% at 38.50p.

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