Redcentric acquires Piksel IS for £9.5 million
Redcentric claims the deal will lead to an immediate increase in earnings
Managed IT services provider Redcentric has announced the acquisition of Piksel Industry Solutions (Piksel IS) for £9.5 million.
Based in York and London, Piksel IS employs 93 people and specialises in providing IT modernisation and digital transformation services to businesses. A partner of both AWS and Microsoft Azure, the firm also delivers managed services across verticals such as security, DevOps, application development, and public cloud.
Redcentric said the acquisition will “significantly enhance” its service offerings in both public cloud and security, while the pair’s complimentary customer base will offer “excellent cross-sell opportunities”.
"This is an extremely exciting strategic acquisition for Redcentric and combines the secure, asset light, digital transformation capabilities of Piksel IS with the managed infrastructure, unified communications and connectivity solutions of Redcentric," commented Peter Brotherton, CEO of Redcentric.
"We are delighted that the combined portfolio will accelerate the Redcentric group's ability to deliver industry leading, transformative solutions to our customers and expands our capabilities in hyperscale public cloud and security."
In its announcement, Redcentric said that significant annualised synergies of at least £1.1m are anticipated, while the move will also be “immediately earnings enhancing”.
Consideration for the acquisition totalled £9.5 million ($13 million), payable in cash funded entirely from existing cash resources, the firm revealed.
Redcentric said the strategically important acquisition “delivers on the Board’s stated strategy to assist growth through acquisitions” and gives the business leading-edge skills in public cloud and security.
Paul Mardling, managing director at Piksel IS, commented that becoming part of a bigger organisation represents an opportunity for the provider to drive further growth.
"We are looking forward to being part of Redcentric. The combined expertise of Redcentric and Piksel IS will bring benefits to both our customers and people,” he said.
“We are now part of a successful larger group and that will help us capitalise on the growing and substantial market for advanced cloud services, networks and cyber security."
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