tashatuvango - Fotolia
Consolidation in the managed services space is one of the ongoing themes of this year and another example has been provided by Pinnacle with its move to acquire adept4 Limited.
The move to buy the cloud services specialist has been made possible thanks to the Business Growth Fund (BGF), which was set up back in 2011 by a number of banks to help smaller companies get their hands on funds.
Pinnacle has funded the deal through the issue of £5m of unsecured loan notes to the BGF and will be getting its hands on an established services outfit.
As well as having 60 customers, on average contract lengths of three to six years, adept4 also comes with a 27x7 service desk and a proven track record of delivering Microsoft Azure projects and is part of the Cisco, Veeam and VMware partner networks.
In the year to 31 December 2015 adept4 generate revenues of £5m, with 67% recurring revenues that is expected to increase in the future.
The plan is to build on the network of contracts that adept4, based in Warrington, had built up to establish an It as a service business for Pinnacle that covers the North.
“This is a pivotal moment for Pinnacle as it completes the turnaround of the business which we set out to do in January 2016. Having executed five acquisitions and three disposals in just over four months we have moved from a loss making company with liabilities to a sustainable operational platform with healthy gross profit margins and high recurring revenues," said Gavin Lyons, executive chairman of Pinnacle.
"Our focus is now on the integration of our acquisitions so that we can scale our asset light, ‘IT as a Service’ proposition we have for UK SME business. Our strategy remains the same and we will continue to focus on growing the company organically and through acquisition," he added.