Sale marks ‘strategic shift’ at IT services group
CloudCoCo, a Leeds-headquartered provider of managed IT services and communications solutions, says another part of its business is to be sold.
It has confirmed that one of its subsidiaries, CloudCoCo Holdings Ltd, has entered into an agreement to conditionally dispose of its wholly owned subsidiary, CloudCoCo Connect Ltd to The BE Company of United Kingdom Ltd for £250,000, including the sale of net liabilities in excess of £1.7m.
The Board intends to use the cash proceeds from the proposed disposal for working capital purposes.
The BE Company is a provider of clean energy infrastructure for power-intensive industries, using a project developer model that promotes Clean Energy-as-a-Service.
It mainly concentrates on project development, management, and financing, offering low-cost clean energy at an industrial scale.
CloudCoCo Connect offers co-location and data centre services to 260 data centre and network customers across its infrastructure located in 32 data centres across the UK.
As revealed on 16 October 2024, certain assets of the managed services, lifecycle and cloud divisions from CloudCoCo Connect have been transferred to CloudCoCo Ltd for the conditional sale of that company.
For the year ended 30 September 2023 and after the re-organisation, CloudCoCo Connect contributed approximately £7.4m of revenues to the group and had a loss before tax of approximately £99,000.
The Board currently expects completion of the latest deal to occur on 31 October 2024. The proposed disposal is not conditional on the sale of CloudCoCo Ltd that was announced on 16 October 2024.
Following completion of the proposed disposal and the sale of CloudCoCo Ltd – as confirmed on 16 October 2024 – the company will continue as an IT value-added reseller (VAR) to deliver enterprise-grade, on-demand IT products and services to customers through its wholly owned subsidiaries, Systems Assurance Ltd and More Computers Ltd.
Simon Duckworth, non-executive chair, said: “The sale of CloudCoCo Connect to The BE Company allows the group to focus on expanding our IT value-added reseller and e-commerce businesses, areas where we see significant opportunities for organic growth.
“This strategic shift will position us to better navigate future challenges and explore new opportunities for the benefit of all shareholders.
“I would like to thank all of our colleagues in the Connect business for their hard-work and dedication and wish them a prosperous future under new owners, who have exciting plans for that business.”
