Pinnacle Technology buys adept4

Pinnacle Technology has bought cloud based IT services provider adept4 for £5.5m.

The AIM-listed company said the acquisition was funded through the issue of £5m of unsecured loan note to its business growth fund.

An initial consideration of £4.5m will be paid in cash and a deferred consideration of £1m in cash will be paid in January 2018. A further contingent consideration of up to £1.5m in cash payable in March 2018, subject to performance criteria for the year to 31 December 2017.

In the year to 31 December 2015 adept4 generated revenue of £5m and earnings before interest, tax, depreciation and amortisation of £0.75m.

Gavin Lyons, chairman of Pinnacle, said: "This is a pivotal moment for Pinnacle as it completes the turnaround of the business which we set out to do in January 2016. Having executed five acquisitions and three disposals in just over four months we have moved from a loss making company with liabilities to a sustainable operational platform with healthy gross profit margins and high recurring revenues.”