CloudCoCo’s acquisitions of IDE Group Connect and Nimoveri from IDE Group will double the company’s current revenues to £27m.

The MSP acquired the pair of companies for a deferred consideration of £250,000. It follows hot on the heels of CloudCoco’s acquisition of Systems Assurance in August.

The acquisitions were made as part of CloudCoCo’s efforts to become a “significant player” in the UK’s fast-growing tech sector.

Revenues from IDE Group Connect and Nimoveri were £13.6m, with recurring managed service contracts contributing 93 percent to that figure. The combined adjusted EBITDA was £800,000 in the unaudited accounts for the year ending 31 December 2020.

IDE Group Connect is a specialist cloud, advanced support, connectivity and co-location datacentre provider. It has around 570 customers, largely comprised of large private sector organisations. Forty of these organisations are IT managed service customers and 530 are datacentre and networking customers, operating across infrastructure located in 33 datacentres across the UK.

Nimoveri was acquired by IDE Group Connect in June of this year. It is an IT managed services business with around 90 customers in the SME space. Nimoveri’s founder and current MD of IDE Group Connect, Adam Eaton, will lead a “short and accelerated” rebrand and integration programme.

Andy Parker, Non-Executive Chairman of IDE Group Holdings, stated:

“As we’ve previously indicated, this disposal allows us to focus on our Partner Business and we have an exciting future ahead of us.  At both a trading level, and after central and plc costs, we have a profitable cash generative business. Our focus is now entirely on growth, both continued organic growth and potential inorganic opportunities”

The addition of the new companies to CloudCoCo expands the group’s technical capabilities, as well as a host of new cross-selling opportunities.

Mark Halpin, CEO of CloudCoCo, stated:

 “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 datacentres.

“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.”

 

 



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