Edinburgh cyber security specialist bought by Liverpool firm

Edinburgh cyber security specialist bought by Liverpool firm

EDINBURGH-based cybersecurity specialist Truststream Security Solutions has been acquired by a Liverpool company in a deal that appears to have put its two founders in line for payments of more than £1m each.

The acquisition reflects growing investor interest in Scottish technology companies. Renfrew-based Beeks Financial Cloud revealed yesterday that it had won a strong response to a £15m fundraiser it launched on Monday. The share placement it completed was “significantly oversubscribed.”

SysGroup has acquired Truststream Security Solutions in a deal valued at around £8m.

SysGroup said the acquisition will allow it to add Truststream’s “comprehensive security offering” to the range of services it provides and extend its reach into Scotland. Truststream’s 10 employees will join Aim-listed SysGroup, which also has offices in London and Manchester.

SysGroup said it believes there are significant cross-selling opportunities between the two firms’ client bases.

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The acquisition reflects the success Truststream has enjoyed under the leadership of founders Paul Sullivan and Bryan Thomson in the rapidly expanding cybersecurity market.

SysGroup said Truststream is one of the UK’s fastest growing managed and professional cyber security service providers. He noted that Truststream’s offering covers “every aspect of cybersecurity, from threat analysis and detection, through protection architecture and implementation, to incident response and 24/7 ongoing support and training.” , 7 days a week.”

The business increased its revenue by around 60%, to £3.2m, in the year to September 30. It increased underlying earnings by 128% to £0.8m.

SysGroup CEO Adam Binks noted that Truststream has high levels of recurring revenue.

He noted: “Cyber ​​security remains a key priority for businesses of all sizes as threats become more prevalent and more damaging.”

Sullivan said the acquisition would allow Truststream to benefit from SysGroup’s reach after experiencing rapid growth in recent years.

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Truststream was founded in 2011. Companies House records show that Sullivan and Thomson each owned more than 25% of the company’s shares.

SysGroup has agreed to pay an initial cash consideration of £4.8m with a gain of up to £3.075m payable based on Truststream’s performance within two years of the completion of the deal.

He said that Mr. Sullivan and Mr. Thomson will continue in their current roles as part of the broader SysGroup team for a minimum of two years.

Binks said the acquisition would support SysGroup’s strategy to become the leading provider of managed IT services to the UK mid-market. The group has made a number of acquisitions in recent years.

HeraldScotland: Gordon McArthur, CEO of Beeks Financial CloudGordon McArthur, CEO of Beeks Financial Cloud

Beeks Financial Cloud announced plans for a £15m fundraising on Monday, as the company sought to maintain the rapid growth it has achieved as a provider of technology that can be used to speed trade execution in financial products. His clients include large financial institutions.

In announcing fundraising plans, the group said it continues to operate successfully in a demanding and time-sensitive industry.

“The directors believe that Beeks is well positioned to further take advantage of the rapid acceleration of cloud deployment in financial services and the growing need for analytics around those infrastructure environments,” the company said.

READ MORE: Beeks boosts profits and creates jobs amid pandemic challenges

He said some of the funds would be used to support the launch of a new product designed for global exchanges and electronic communication networks, which they will be able to sell to their clients. The product, Exchange Cloud, is expected to significantly increase the market for Beeks’ technology.

New and existing shareholders supported the fundraiser, which was completed at 165 pence per share.

Shares of Beeks Financial Cloud closed up 2.5 pence at 175 pence.

The company employs 68 people in Renfrew out of a total of 95.

READ MORE: Investment firm lines up ‘exciting’ deals in Scotland after £60m activity boom in 2021

Private equity investors and business angels have backed a number of technology companies in Scotland in recent years. Firms added to BGF’s portfolio of investment operations last year included Glasgow-based information technology group Kick ICT and Odro, which provides video interviewing and engagement software for the recruitment industry.

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