MSP Redcentric has bought cybersecurity firm 7 Elements for £2.4 million.
For those not in the know, 7 Elements is based in Edinburgh and provides security testing, incident response management and bespoke security consultancy services.
The company has annualised revenues of circa £1 million and an EBITDA of about£300,000.
Redcentric claims the move will “significantly enhance” its service portfolio with “additional capability within the increasingly important security market”.
Redcentric CEO Peter Brotherton said the addition of 7 Elements services to Redcentric’s existing DDOS, SIEM, managed WAF and information security consultancy services means it can offer a complete portfolio of security services.
“I’m very much looking forward to working with David and the 7 Elements team to help ensure our customers are secure”, he said.
7 Elements will continue to operate as a standalone business under its former owner David Stubley, who established the business in 2010.
Under the terms of the agreement, a fee of £1.95 million was paid in cash on completion, with a further earnout payable in cash based on the future performance of the business over the next 13 months. The maximum potential consideration payable is £2.4 million.
Last month, Redcentric said it was looking forward to making “positive progress in 2022 and beyond” after putting a 2016 accounting scandal behind it, following the news that two former finance directors had been convicted of making false financial statements.
