MSP Redcentric has acquired fellow Microsoft Gold partner Piksel Industry Solutions for a cash consideration of around £9.5m ($13m).
York-based Piksel provides application, public cloud, and security-based digital transformation and managed services, specialising in Amazon Web Services (AWS) and Microsoft Azure. It reported revenues of £38.7m and gross profit of £12m for its year ending 31 December 2020 and has a headcount of 93.
LSE-listed Redcentric is also a partner of AWS and Microsoft and counts Cisco, Dubber, and Poly among its other vendor partners. The deal will see about £8.8m payable in cash immediately, while the remaining £700K will be held in escrow for 12 months.
The acquisition is a part of Redcentric’s inorganic growth strategy while giving it skills and capabilities in public cloud and security and enhancing its customer base. It is expected that Piksel will generate annualised revenues of £10m and EBITDA of £400,000.
“This is a great acquisition for Redcentric and combines the secure, asset light, digital transformation capabilities of Piksel with the managed infrastructure, unified collaboration, and network solutions of Redcentric,” stated Peter Brotherton, CEO of Redcentric.
“The combined portfolio will accelerate the group’s ability to deliver industry-leading, transformative solutions to our customers and expands our capabilities in hyperscale public cloud and security”
Paul Mardling, Managing Director, Piksel Industry Solutions, added: “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. 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 cybersecurity.”
