Acquisition of 7 Elements Limited

RNS Number : 7499E

Redcentric PLC

15 March 2022

 

Redcentric plc

Acquisition of 7 Elements Limited

Redcentric plc ("Redcentric") is pleased to announce the acquisition of the entire issued share capital of 7 Elements Limited ("7 Elements"), an industry leading provider of security testing, incident response management and bespoke security consultancy services (the "Acquisition").

7 Elements works closely with customers to assess security threats, identify weaknesses and deliver tailored solutions to protect customers. The Acquisition therefore significantly enhances the Redcentric service portfolio with additional capability within the increasingly important security market. In addition, 7 Elements has a strong customer base, across a range of industries and sectors, which will be able to benefit from the combined Redcentric and 7 Elements offering.

7 Elements is CREST accredited and was awarded the "Innovation through Cyber" award at the 2020 Digital Technology Awards for its vulnerability scanning service, Clarus. It 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 and has built it to its current size with a highly skilled and experienced team. Under the terms of the agreement in relation to the Acquisition, £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, commented:

"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."

Enquiries:

Redcentric plc    [phone] 

Peter Brotherton, Chief Executive Officer 

David Senior, Chief Financial Officer   

finnCap Ltd - Nomad and Broker                                                                  [phone]

Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance)

Andrew Burdis / Sunila de Silva (ECM)   

 

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