Pinnacle has agreed to sell the trade and assets of Pinnacle CDT to Chess for a total cash sum of £2.8m.
The company said the disposal represents a key step in repositioning itself “firmly as a provider of ‘IT as a service’ targeting an increased level of recurring revenues and higher margin services”.
Pinnacle CDT provides a range of data, telecommunication and certain IT support services to a 1,000-strong customer base from offices in Glasgow and Stockton-on-Tees. The business generated revenue of £6.8m and a net loss before tax and head office costs of £200,000.
The company employs 27 staff, all of whom will transfer to Chess, which is based in Borehamwood.
This deal follows Pinnacle’s recent disposals of RMS Managed Security and its shareholding in Stripe 21. The group now consists of the businesses of Ancar-B Technologies and Weston Communications, acquired in February 2016.
Gavin Lyons, executive chairman of Pinnacle, said: “When I was appointed in December 2015, it was apparent that there were many legacy and operational issues that needed to be addressed within the group. Through the disposals of Pinnacle CDT, RMS Managed Security and Stripe 21 we now have a stable financial and operational platform to build on.
“The focus is now entirely on the integration of Ancar-B and Weston Communications whilst utilising our cash and management resources to consolidate a highly fragmented market through acquisition so we maximise earnings and value for shareholders. I am pleased with the progress being made on both fronts.”