CloudCoCo agrees £9.2m sale of IT managed services business – Insider Media

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Listed IT and communications services provider CloudCoCo Group has agreed a deal to sell its IT managed services business to Aspire Technology Solutions for up to £9.2m.
CloudCoCo Ltd is a UK provider of IT managed services to private and public sector organisations. Supported by a 24×7 IT support desk, it works across four principle areas: connectivity, multi-cloud, collaboration and cyber security.
The company serves about 360 business customers and for the year ended 30 September 2023, reported a turnover of £7.26m with a loss before tax of approximately £170,000.
Following the completion of the re-organisation prior to completion of the deal, the enlarged CloudCoCo Ltd business, including the managed services assets novated from Connect, would account for turnover of approximately £12.4m and profit before tax of approximately £700,000 for the year ended 30 September 2023.
CloudCoCo Group will focus on its product reseller business going forward, via its Systems Assurance business-to-business operation in Sheffield and its ecommerce platform MoreCoCo.
Simon Duckworth, non-executive chairman at CloudCoCo Group, 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 ecommerce, 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.”
A sale has been agreed to Gateshead-based Aspire Technology Solutions for a gross cash consideration of up to £9.2m. When adjusted on a debt free, cash free and normalised working capital basis, this would result in a net cash consideration of approximately £7.85m. 
The proposed sale is subject to shareholder approval at the general meeting to be held at the offices of DAC Beachcroft on 31 October 2024.
Allenby Capital is the nominated adviser to CloudCoCo Group. 
CloudCoCo has headquarters in Leeds and regional offices in Warrington, Sheffield and Bournemouth.
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