CloudCoCo, a UK provider of IT and communications solutions to businesses and public sector organisations, has announced the proposed acquisition of the entire issued share capital of Systems Assurance, an IT group comprising a B2B value-added reseller and an automated cloud-based VAR and IT managed service provider, and a proposed fundraising of £2.1 million before expenses through a conditional placing.
Systems Assurance introduces a proven and scalable hardware engine into CloudCoCo’s existing business as well as expanding its IT managed service offering, which will help increase operational efficiency and drive margins. The proposed acquisition will increase CloudCoCo’s customer base and provide the opportunity for cross-selling and upselling of its services.
The acquisition signals the start of the company’s ‘Get Bigger’ phase, both organically and through acquisition, to provide scale to the business. Chief Executive Mark Halpin, said: “This placing and acquisition is set to be a transformative step forwards for CloudCoCo. 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. 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.”