CloudCoCo, a Leeds-based provider of managed IT services and communications solutions, has announced the proposed sale of one of its subsidiaries – CloudCoCo Holdings Ltd.
If approved by shareholders, the deal would involve the sale of the entire issued share capital of CloudCoCo Ltd – the group’s IT managed services business – to Aspire Technology Solutions Ltd, for a gross cash consideration of up to £9.2m. This would result in a net cash consideration of approximately £7.85m when adjusted on a debt-free, cash-free, and normalized working capital basis.
Simon Duckworth, CloudCoCo non-executive chairman, stated, “The proposed sale of our IT managed services business marks a positive step for the group, enabling us to eliminate long-term debt and focus on expanding our value-added reseller operation, particularly in e-commerce, where we see significant opportunity. Alongside this, we are in advanced discussions for the sale of our Connect business to further strengthen our financial position and streamline our proposition. While FY24 has presented trading challenges, we are confident the strategic shift announced today secures the group’s long-term future and ensures a solid foundation for growth moving forwards.”
CloudCoCo Ltd serves approximately 360 business customers and reported a turnover of £7.26m for the year ended 30 September 2023, with a loss before tax of approximately £0.17m based on audited accounts.
Aspire Technology Solutions Ltd is an IT managed service and cyber security provider, specializing in cyber security, cloud, connectivity, managed services, unified communications, and IT support. It is a privately owned company, incorporated in the UK and operating from offices in Gateshead, Glasgow, Stockton, and London.