Styles&Wood said that the acquisition “provides new opportunities to broaden work streams to both existing and new customers”.
The two companies recently worked together to pitch successfully for a place on a national framework by a major international financial institution. The contract includes work on critical facilities and data centres. Styles&Wood now envisages being able to offer Keysource's services to its other banking framework customers.
The overall market for data centres is forecast to top £1.1bn by the end of 2020, representing annual growth of 3-4%, some research suggests.
Styles&Wood will pay £1m in cash and issue 257,365 new ordinary shares to the vendors of Keysource, who are staying with the business.
There is potential for further deferred consideration of up to £5m, payable in cash and shares, subject to hitting targets by the end of 2018.
Established in 1998, Keysource is based in Horsham, Sussex, and has more than 60 staff. Last year it generated revenues of £18.7m and made an underlying pre-tax profit of £100,000. Net assets as at year-end were £2.2m.