Daily Internet acquires System Professional

Liverpool-based hosting and cloud infrastructure provider Daily Internet PLC has entered into a deal to acquire a managed services provider and IT consultancy for up to £5.8 million, after which it will change its name to SysGroup PLC.

System Professional is a managed services and IT consultancy services provider, offering strategic advisory services to public and private sector clients.

Daily Internet has agreed to pay an initial consideration of £3.9m for System Professional Ltd, which is based in East Sussex and trades as Sys-Pro.This will be satisfied with £3.3m in cash and 975,000 consideration shares. It will also pay an additional £1.9m subject to Sys-Pro meeting a number of performance criteria.

To fund the deal and to support the future working capital of the enlarged business, Daily Internet has raised £5m through the placing of 8.3 million ordinary shares.

Chris Evans, chief executive of Daily Internet, said: “We are delighted to announce the transformational acquisition of Sys-Pro and are looking forward to working with the Sys-Pro team.

“As well as being immediately earnings enhancing it will greatly strengthen our core managed services business in terms of scale and capability. This will enable us to better exploit the ongoing market shift toward cloud delivered services and accelerate our growth.”

Sys-Pro was founded as a hardware reseller in 2003. It employs 39 staff across its bases in Hadlow Down and London.