Managed service player Adept4 has snapped up CloudCoCo.
The deal valued at £6.1 million will be put to a shareholder vote on 21 October, with the name being changed to CloudCoCo Group.
CloudCoCo was set up by former sales directors from Redcentric. Once the deal is given the thumbs up from shareholders, the plan is for Andy Mills, current chairman of CloudCoCo would join the board of Adept4 as CEO. Mark Halpin (founder and current CEO of CloudCoCo) will lead the business development activities, with Robert Speight and Graham Collinson (respectively CloudCoCo’s chief sales officer and chief operating officer).
Adept4 has had a mixed year and has been on a cost-cutting diet to improve its fortunes. In June the firm its six-monthly figures showed that revenue of £4.2 million was down from £5.4 million in the same period last year and its losses had increased from £0.8 to £1.1 million.
In information sent to shareholders, Adept4 made it clear that it viewed the acquisition as the best opportunity for the firm to return to healthy growth and secure a better future for the firm.
“We are delighted that, conditional on shareholder approval; we have agreed to acquire CloudCoCo. We are proposing to acquire a business which has expanded rapidly since establishment”, said Simon Duckworth, non-executive chairman of Adept4.
“By harnessing CloudCoCo’s proven and experienced salesforce with our existing operations, we believe that there is a clearly defined opportunity to return Adept4 to growth. We have also reached an agreement, subject to completion of the acquisition, to revise the terms and reduce the level of the Group’s indebtedness. We view these proposals as positive developments as we seek to recover value for our shareholders.”
