IT services group to eliminate long-term debt by selling off a subsidiary
CloudCoCo, a Leeds-headquartered provider of managed IT services and communications solutions, has confirmed a proposed sale of one of its subsidiaries – CloudCoCo Holdings Ltd.
If approved by shareholders, the deal would involve a 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.
When adjusted on a debt free, cash free and normalised working capital basis, this will result in a net cash consideration of approximately £7.85m.
Simon Duckworth, CloudCoCo non-executive chairman, said: “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 for the year ended 30 September 2023, reported a turnover of £7.26m with a loss before tax of approximately £0.17m, based on audited accounts.
Aspire is an IT managed service and cyber security provider, specialising 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.
