Scotland-based MacLellan is a provider of IT services to the SME and mid-market, the purchase has been made throgh Pinnacle’s subsidiary Pinnacle Cloud Solutions.

The deal, worth £1.06 million, will allow Pinnacle to build its cloud services offerings and its presence in the Scottish SME market.

Alan Bonner, chief executive of AIM-listed Pinnacle Telecom, comments: ‘In order for Pinnacle to build its cloud-services proposition, it has always been part of our strategy to increase our IT capability.

‘The latest acquisition is earnings enhancing, it is also an all-share deal with lock-in provisions, which preserves cash, aids an orderly market and keeps the company free of bank debt.’

The deal has been structured as a sale of the business and assets, the share capital of MacLellan has not been acquired.

MacLellan provides services including IT strategy development, hardware and software installation, helpdesk support and system integration.

Managing director of MacLellan, Katherine Melton-Scott, says: ‘We’ve waited a long time to find a synergistic company that reflects our commitment to outstanding customer service and value for money.’

Melton-Scott adds that the acquisition adds to the services which the business can offer.

Bonner says that the deal is part of a strategy to build Pinnacle through bolt-on purchases, growing its next generation, cloud-based IP services.

MacLellan recorded turnover of £878,770 for the year to date 30 June 2011, down from £972,481 in 2010. Operating profits also dropped from £272,816 to £240,065 during the same periods.

The acquisition is the second for Pinnacle in the past month following the buy of internet protocol business IP CCTV.

Cloud technology business Pinnacle recently provided the supply network connection for the Royal Wedding between Prince William and Kate Middleton as part of the international news networks coverage.

Another recent contract for Pinnacle was for June’s Glastonbury Festival.