IT services business Pinnacle Telecom has made its second purchase of the week with a deal for RMS Managed ICT Security, which provides IT security software and consultancy services to the mid-market and public sector.
IT services business Pinnacle Telecom has made its second purchase of the week with a deal for RMS Managed ICT Security, which provides IT security software and consultancy services to the mid-market and public sector.
The deal follows AIM-listed Pinnacle’s acquisition of Online Computer Developments on Thursday in a transaction worth £110,000, and takes its 2011 deal count to four during a period where its services have been used at the Royal Wedding and Glastonbury.
Under the terms of the deal for Staffordshire-based RMS, an initial consideration of £25,000 is to be satisfied in cash on completion with deferred payments adding up to £343,301 to be paid between 31 October 2011 and 25 December 2014.
Additionally, at completion, there is to be an issue of a two-year interest-bearing convertible loan note for the value of £100,000 of ordinary shares on Pinnacle Telecom.
Alan Bonner, chief executive of UK-based Pinnacle, comments: ‘RMS connects, secures and manages large enterprises and organisations in both the private and public sector.
‘We understand that the two greatest concerns for businesses embracing the move to cloud-based technologies are connectivity, such as what happens if I can’t connect to my data and applications, and security, as in how secure are my cloud-based applications and my data.’
According to a statement the acquisition brings an additional 1,700 additional customers from mid-market to public sector with ‘strong cross-selling opportunities’ existing across the new combined businesses.
Bonner believes that IT security is one of the most important factors involved in moving the take-up of cloud services from early adopters to mainstream.
The deal brings with it partnerships with software vendors such as McAfee, Sophos, IBM and Microsoft.
Following the deal Bonner says that Pinnacle will continue to target ‘well priced earning-enhancing’ acquisitions as the business grows.
