Leicester tech firm set to be sold in £40m deal

Cloudcall, the Leicester-based software and telecommunications firm, looks set to be sold in a deal worth almost £40m.

Xplorer Capital, a newly-formed company, has tabled a £39.9m bid for the company which will see it pay 81.5p for each Cloudcall share. The deal would see the firm taken back into private hands.

Xplorer Capital is a newly formed entity owned and managed by funds advised by Xplorer Capital Management, which is a global technology investment firm based in Silicon Valley, California.

Keith Nilsson, founder and managing partner of Xplorer Capital Management, said: “We are delighted to have reached agreement on the terms of the acquisition with the board of CloudCall. We believe CloudCall would benefit from returning to private ownership with the support of a growth-focused shareholder and look forward to accelerating the growth of the business and helping it to reach its full potential by providing CloudCall with access to significant additional capital resources.”

Peter Simmonds, non-executive chairman of CloudCall, said:”Over recent years, the management of CloudCall has continued to develop its product mix, enhanced its client base and positioned itself for growth. However, CloudCall operates in a highly competitive environment where many of its peers are larger and better capitalised and CloudCall will require additional funding to continue to support its strategy and remain competitive. Against this backdrop, I believe the offer from Xplorer Capital represents an attractive premium, provides certain value today for CloudCall shareholders and provides CloudCall with the opportunity to access significant further capital to implement CloudCall’s strategy in the future.”