REG - SysGroup PLC - Acquisition & Notice of Results

SysGroupAnnouncement

19/11/2024 07:00

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RNS Number : 6902M  SysGroup PLC  19 November 2024

19 November 2024

 

SysGroup plc

("SysGroup", the "Group", or the "Company")

Acquisition & Notice of Results

SysGroup plc (AIM:SYS), the technology partner for delivery and management of
cloud, data, and security services to power Artificial Intelligence ("AI") and
Machine Learning ("ML") transformation, today announces its acquisition of the
trade and assets of Crossword Consulting Limited ("CCL"), the consulting arm
of Crossword Cybersecurity plc.

Acquisition

The Group is pleased to announce the acquisition of the trade and assets of
CCL for cash consideration of £311,000, with a potential post conditional
payment of £127,000. Based in London, CCL is a recognised leader in
cybersecurity consulting, offering specialised services such as virtual CISO
("vCISO") support and Penetration Testing to medium and large enterprises.

This acquisition strengthens our capabilities with the addition of 12 seasoned
cybersecurity consultants, who will expand SysGroup's customer offerings in
cybersecurity and compliance. For the 12 months ending 30 September 2024, CCL
delivered unaudited revenues of circa £2.4 million with more than 75% of
revenues recurring. Additionally, CCL brings a diverse client base of
customers, including FTSE 100, FTSE 250, and S&P-listed companies, which
presents new cross-sell opportunities across multiple sectors.

 

Notice of results

 

SysGroup expects to publish its half year results for the six-month period
ended 30 September 2024 on 3 December 2024.

 

Heejae Chae, Executive Chairman commented:

 

"This acquisition strengthens our strategy to become the partner of choice in
our customers' AI journey and digital transformation by enhancing our
cybersecurity capabilities and expanding into Compliance as a Service
("CaaS"). Crossword Consulting's expertise ensures that we can secure critical
infrastructure, data, and processes - essential components for the successful
adoption and scaling of AI. Their services, including Cyber Maturity
Assessments and vCISO solutions, provide the compliance and risk mitigation
needed to build trust in data-driven systems. By integrating these
capabilities, we position ourselves to deliver comprehensive, secure, and
innovative solutions that empower our customers to confidently embrace AI and
drive their transformation agendas.

 

We are confident in our strategy and the progress achieved over the past
months following our equity raise in June 2024. Our strong balance sheet
positions us to effectively pursue strategic acquisitions such as CCL.  Based
on our current recurring revenue, the Board has good visibility that revenue
levels will remain consistent with the prior year. Additionally, we are
actively engaged in discussions regarding a number of high-potential contracts
with both new and existing customers, which could unlock significant growth
opportunities and drive revenue beyond our recurring base."

 For further information, please contact:

 SysGroup plc                              Tel: 0333 101 9000
 Heejae Chae, Executive Chairman
 Owen Phillips, Chief Financial Officer

 Zeus (Nominated Adviser and Broker)       Tel: 0161 831 1512
 Jordan Warburton
 Nick Cowles
 Alex Campbell-Harris
 Nick Searle

 

About SysGroup

SysGroup plc is a managed service provider of end-to-end data solutions
enabling us to take our customers on their AI data journey. The Group offers
an integrated set of modern technologies that collectively meets our customers
end-to-end data needs including connectivity, cloud hosting, delivery,
analytics and governance of customer data, as well as a security layer for
users and applications.

The Group has offices in Manchester, Edinburgh, London, and Newport.

For more information, visit http://www.sysgroup.com (http://www.sysgroup.com)

 

 

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