LONDON, UK: CloudCoCo, a UK provider of IT and communications solutions to businesses and public sector organisations, announced the proposed acquisition of the entire issued share capital of Systems Assurance Limited, an IT group comprising a B2B value-added reseller and an automated cloud-based VAR and IT managed service provider.
The consideration for the acquisition is £1.58 million gross. Company also proposed fundraising of £2.1 million before expenses through a conditional placing.
The proposed acquisition will increase CloudCoCo’s customer base and provide the opportunity for cross-selling and upselling of its services.
The e-commerce division of Systems Assurance will increase the purchasing power of the Enlarged Group and broaden its product range, as well as streamline its current processes and offer greater efficiency and margin accretion through automation
The acquisition signals the start of the Company’s ‘Get Bigger’ phase, both organically and through acquisition, to provide scale to the business. It follows the successful completion of ‘Get Well’ and ‘Get Fit’ phases.
Mark Halpin, Chief Executive of CloudCoCo, said: “This Placing and Acquisition is set to be a transformative step forwards for CloudCoCo. It sees us progress to the next stage in our development – ‘Get Bigger’ – which will see us focus on scaling the business while winning larger and longer contracts.
“I would like to welcome the Systems Assurance team to the fold. They bring with them fantastic technology and an impressive customer base that not only complement the existing CloudCoCo business but will help unlock its potential through driving substantial efficiency gains and introducing new cross-selling opportunities.
“I am grateful to all those who have joined us on our journey through the Placing. As well as making the Acquisition possible, it has given us the opportunity to strengthen our balance sheet while giving us headroom to explore further M&A activity – a key focus for the Group in the short-term.
“This is the start of an exciting new chapter in the CloudCoCo story and I look forward to reporting on further progress in due course.”
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12 Aug, 8:20 am GMT+1 ·Disclaimer