CloudCoCo, a managed services provider based in Leeds, UK, has exciting news to share! The company has announced plans to sell its IT services business to Aspire in a £9.2 million ($11.9m) deal. This move will not only help CloudCoCo pay off its debts but also streamline its operations.
The deal involves the entire sale of CloudCoCo Limited, the group’s IT managed services business. Additionally, CloudCoCo is in advanced discussions to sell Connect, its data center business, which includes colocation and data center services delivered from 32 UK-based facilities. The sale is expected to close at the end of the month.
Proceeds from the sale will cover all of the group’s liabilities, with approximately £950,000 ($1.2m) in cash left over for working capital. Following completion, CloudCoCo will continue to deliver enterprise-grade, on-demand IT products and services through its two wholly-owned subsidiaries: Systems Assurance and More Computers (MoreCoCo).
Simon Duckworth, non-executive chairman at CloudCoCo, expressed his optimism about the sale, stating, “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.” He also mentioned the company’s plans to strengthen its financial position by selling the Connect business.
Aspire, the acquiring company, is a managed IT services and cyber security provider specializing in cloud, connectivity, and IT support services. With offices across the UK in Gateshead, Glasgow, Stockton, and London, Aspire is well-positioned to support CloudCoCo’s transition.
This exciting development comes after CloudCoCo reported pre-tax losses in its June 2024 interim report. The company has been working diligently to refinance its loans and address challenges in the market. With this strategic sale, CloudCoCo is poised to move forward with confidence and a renewed focus on growth.