A Warrington-headquartered IT and communications firm, which works with the likes of Boohoo, Mills & Reeve and King's College London, has announced a new acquisition and raised £2.1m through a share placing.
CloudCoCo, which is listed on AIM, is to snap up Systems Assurance, an IT group comprising a B2B value-added reseller and an automated cloud-based VAR and IT managed service provider.
For the year to December 31, 2020, unaudited results showed Systems Assurance generated revenue of £6,093,000 and an adjusted EBITDA of £209,000.
READ MORE: Online shopping helps Lakeland return to the black despite Covid-19 pandemic
CloudCoCo has raised £2.1m before expenses through a conditional placing arranged by Allenby Capital of 210,000,000 new ordinary shares.
The placing will fully fund the acquisition of Systems Assurance and will also provide additional working capital to fund integration of the deal and also provide headroom that could be used to fund further moves.
Mark Halpin, chief executive of CloudCoCo, said: "This placing and acquisition is set to be a transformative step forwards for CloudCoCo.
Don't miss a thing - sign up for your free North West newsletter - and follow us on LinkedIn
Email newsletters
BusinessLive is your home for business news from around the North West- and you can stay in touch with all the latest news from Greater Manchester, Liverpool City Region, Cheshire, Lancashire and Cumbria through our email alerts.
You can sign up to receive daily morning news bulletins from every region we cover and to weekly email bulletins covering key economic sectors from manufacturing to technology and enterprise. And we'll send out breaking news alerts for any stories we think you can't miss.
Visit our email preference centre to sign up to all the latest news from BusinessLive.
For all the latest stories, views, polls and more - and the news as it breaks - .
"It sees us progress to the next stage in our development - 'Get Bigger' - which will see us focus on scaling the business while winning larger and longer contracts.
"I would like to welcome the Systems Assurance team to the fold. They bring with them fantastic technology and an impressive customer base that not only complement the existing CloudCoCo business but will help unlock its potential through driving substantial efficiency gains and introducing new cross-selling opportunities.
Latest Cheshire Business News
"I am grateful to all those who have joined us on our journey through the Placing. As well as making the acquisition possible, it has given us the opportunity to strengthen our balance sheet while giving us headroom to explore further M&A activity - a key focus for the Group in the short-term.
Have you followed our yet? Click for the latest updates, stories and analysis from across the region.
"This is the start of an exciting new chapter in the CloudCoCo story and I look forward to reporting on further progress in due course."
