Bytes Technology Group, one of the UK's leading software, security and cloud services businesses, has acquired CyberOne, a UK cyber security services provider, for an initial £19.4 million funded from existing cash.
Further contingent payments are due over the next 16 months depending on performance.
CyberOne, founded in 2005, provides AI-enabled managed security services, security operations and cyber resilience consulting to enterprise and mid-market customers.
The business has more than 80 employees across the UK and the Philippines and generated revenue of £9.5 million in the 12 months to 31 July 2026, with expanding gross profit margins.
CyberOne holds Microsoft Security Elite Partner status and is a member of the Microsoft Intelligent Security Association, strengthening Bytes's position within the Microsoft ecosystem.
The UK cyber security services market is expected to reach approximately £5.2 billion by 2029, with double-digit annual growth forecast.
Bytes said the deal was expected to be earnings-enhancing in the first full financial year of ownership.
CyberOne's leadership team will join Bytes and initially continue to operate as a standalone unit, working alongside Bytes's sales teams.
Completion is subject to clearance under the UK's National Security and Investment Act 2021, which Bytes said it expected to receive shortly.
Chief executive Sam Mudd said the acquisition combined a proven managed security platform and high-margin recurring revenue with Bytes's existing scale and customer reach.
