LONDON, UK: CloudCoCo Group, a leading UK provider of Managed IT services and communications solutions, announced two further acquisitions to support its stated goal of becoming a significant player in the fast-growing UK Technology sector.
CloudCoCo acquires IDE Group Connect Limited and Nimoveri Limited from IDE Group Holdings for a deferred consideration of £250,000.
IDE Group Connect is a specialist cloud, advanced support, connectivity and co-location data centre provider. Prior to being acquired by CloudCoCo it was part of IDE Group Holdings PLC (IDE).
IDE Group Connect has circa 570 customers, mainly comprising of large private sector organisations. 40 of these organisations are IT managed service customers and 530 are data centre and networking customers, operating across infrastructure located in 33 data centres across the UK. The IDE Group Connect business recorded an adjusted EBITDA of £(0.9) million on revenues of £13.1 million in the unaudited accounts for the year to 31 December 2020, with 93% of those revenues being contracted and recurring.
In June 2021, IDE acquired Nimoveri Limited, an IT managed services business, and which is now a subsidiary of IDE Group Connect. Nimoveri has circa 90 customers in the SME space and recorded an adjusted EBITDA of £0.1 million on revenues of £0.5 million in the unaudited accounts for the year to 31 December 2020. CloudCoCo is pleased to report that Adam Eaton, founder of Nimoveri and current Managing Director of IDE Group Connect will lead a short and accelerated full rebrand and integration programme.
The majority of colleagues joining CloudCoCo from the Acquisitions are technically accredited engineers across the Microsoft stack as well as in cloud infrastructure, data centres, networking, IT support and digital transformation. This adds to the array of talented technical staff already in CloudCoCo.
CloudCoCo has a goal of becoming one of the UK’s fastest growing IT Services company, through organic growth and continuing its buy and build strategy. Its acquisition strategy focuses on identifying companies with talented individuals operating in businesses that are subscale and can benefit from being part of a larger organisation.
The Group’s growth strategy is to drive additional revenue from existing customers whilst also targeting larger clients that have significant IT budgets. CloudCoCo aims to become the supplier of choice in the industry by offering exceptionally high levels of service at a price point that is competitive in the marketplace.
In addition, IDE will provide CloudCoCo with a working capital facility of up to £500,000 to help fund the initial restructure of the IDE Group Connect business. Amounts drawn will be convertible into new ordinary shares of CloudCoCo at 1p per share if not repaid by 19 October 2022. IDE and CloudCoCo have also undertaken to agree terms of a Transitional Services Agreement by 29 November 2021 to ensure a smooth transition over a number of months of various contracts and shared services.
Commenting on the Acquisitions, Mark Halpin, CEO of CloudCoCo, said: “The acquisition of IDE Group Connect and Nimoveri is truly transformational for CloudCoCo and provides us with the scale required to target bigger customers with larger budgets, as well as serving as a great catalyst for future expansion.
Together, the Acquisitions will almost double our current annualised revenues to around £27 million and take our customer base to more than 1,000, with a multitude of new sales opportunities across the board including enhanced private, hybrid and multi-cloud transformation projects through the addition of customer infrastructure in 33 data centres.
We have demonstrated our ability to reset, recover and grow businesses of this nature by keeping things simple, and we are confident we will be able to replicate the success of the past couple of years with the acquired businesses.
I’ve been very impressed with the IDE Group Connect and Nimoveri teams. They are exceptionally talented and will complement the CloudCoCo group. I would like to take this opportunity to welcome them to the CloudCoCo family.
To all our customers and partners across the enlarged Group, I would like to reiterate the Company’s commitment to ensuring you receive the best possible experience when you choose to work with CloudCoCo, and to all colleagues – new and old – the Chairman and Board thank you for your support. The dedication and passion of our people has been fundamental to the real progress we have made so far and will continue to be as we move into this next exciting phase of development.”
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