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Pinnacle Technology Group hives off IT support division for £2.8m as part of disposal drive

Technology and telecommunications firm Pinnacle Technology Group plc have announced the disposal of their Pinnacle CDT business for £2.8m to a Cheshire-based IT firm.

The deal will see Chess ICT Limited acquire Pinnacle CDT, who provide data, telecommunication and IT support services, for the full cash consideration of £2.8m and will absorb all 27 staff members currently employed at CDT’s offices in Glasgow and Stockton-on-Tees.

It comes as Pinnacle continue their disposal drive following a group reorganisation in March 2016, as the firm angles itself towards the ‘IT as a service’ sphere and looks to overcome pretax losses of over £0.2m.

The London-based IT business, who count the likes of O2 and Toyota amongst its clients, has already disposed of software security division RMS Managed Security as well as its shareholding in internet services firm Stripe 21.

Executive Chairman, Gavin Lyons, is leading the current ongoing reorganisation and effort and he commented: “The disposal represents a significant step forwards in achieving our strategy of creating a strong ‘IT as a Service’ business with recurring revenues and higher margin services. When I was appointed in December 15, 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”