Harrogate-headquartered managed IT service provider, Redcentric, has acquired 7 Elements Limited, a provider of security testing, incident response management and bespoke security consultancy services, in a deal worth up to £2.4m.
7 Elements works closely with customers to assess security threats, identify weaknesses and deliver tailored solutions to protect customers. The acquisition enhances the Redcentric service portfolio with additional capability within the security market.
7 Elements has annualised revenues of c.£1m and EBITDA of c.£0.3m.
While 7 Elements is now a key part of the Redcentric group of companies, it will continue to operate as a standalone business and will continue to be led by its former owner, David Stubley, who established the business in 2010.
Under the terms of the agreement, £1.95m initial consideration was paid in cash on completion, with a further earn out payable in cash based on the future performance of the business over the next thirteen months. The maximum potential consideration payable is £2.4m.
Peter Brotherton, Chief Executive Officer, Redcentric, said: “I am delighted to welcome 7 Elements into the Redcentric family. The addition of its services to Redcentric’s existing DDOS, SIEM, managed WAF and information security consultancy services means we are now able to offer a complete portfolio of security services to our customers. I’m very much looking forward to working with David and the 7 Elements team to help ensure our customers are secure.”
