Tialis Essential IT PLC on Tuesday said it has bought multiple profitable partner contracts from Allvotec, a division of Daisy Group Ltd.
Tialis is a Croydon-based cloud & IT managed services provider, it was formerly known as IDE Group Holdings PLC. Its shares were up 12% to 70.00 pence each in London on Tuesday afternoon.
The contracts will be acquired for £2.1 million in new Tialis shares, issued at 89.2p. Tialis has a £15 million market capitalisation.
‘The acquisition will bring three new channel partners to Tialis, supporting the diversification of Tialis’ partner base and will also build on the existing relationship that Tialis has with its largest channel partner,’ Tialis said.
Revenue and earnings before interest, tax, depreciation and amortisation from the contracts were about £12.5 million and £1.5 million, respectively, in 2022. Tialis expects them to provide £5.7 million in revenue in 2023.
A total of 140 staff will transfer from Allvotec to Tialis to execute the contracts. Daisy Founder & Chair Matthew Riley is expected to join the board of Tialis as a non-executive director.
The acquisition is expected to be complete on January 31 next year.
Chair Andy Parker said: ‘This is a pivotal moment in the continued recovery and restructure of Tialis. The acquisition of these profitable contracts will further cement the position of Tialis as a partner of choice for the services it provides.’
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