19 July 2019

Cloud hosting firm SysGroup has acquired Bristol B2B managed services firm Hub Network Services (HNS) in a £1.45m deal.

The agreement will see the latter’s network infrastructure, supply agreements and industry reputation complement SysGroup’s existing managed IT and cloud hosting offerings in the enlarged business.

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.

“I am thrilled to have made our second acquisition of the year and look forward to working with the HNS team in due course,” said Adam Binks, chief executive officer at SysGroup. “The acquisition of HNS further complements our existing managed 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 SysGroup continues to grow, we’re excited by the prospects that lie ahead on our journey to become the leading provider of manged IT services to businesses in the UK and the addition of the HNS team to the group is a big step forward on that journey.”

Established in 1997, HNS provides connectivity and co-location services to approximately 120 customers on both a direct and indirect basis.

Its clients typically contract for 36-month periods.

AIM-listed SysGroup, which also has offices in London, Telford and Coventry, told investors that HNS’ existing management would remain with the group for three months to ensure a smooth transition with regards to the handover of day-to-day operations.