LONDON (ShareCast) - (Sharecast News) - Managed IT and communications service provider CloudCoCo announced two further acquisitions on Wednesday, supporting its stated goal of becoming a "significant player" in the fast-growing UK technology sector.
The AIM-traded firm said it was acquiring IDE Group Connect and Nimoveri from IDE Group, for a deferred consideration of £0.25m.

Revenues from the acquisitions were £13.6m, with 93% of those revenues being from recurring managed services contracts, and combined adjusted EBITDA losses totalled £0.8m in the unaudited accounts for the year ended 31 December.

CloudCoCo management had identified a number of immediate steps that could be implemented to help drive profitability across the enlarged group, the board said.

The directors added that the acquisitions would provide the company with around 660 additional clients, and a "significant opportunity" to upsell and cross-sell services across the group.

"The acquisition of IDE Group Connect and Nimoveri is truly transformational for CloudCoCo and provides us with the scale required to target bigger customers with larger budgets, as well as serving as a great catalyst for future expansion," said chief executive officer Mark Halpin.

"Together, the acquisitions will almost double our current annualised revenues to around £27m and take our customer base to more than 1,000, with a multitude of new sales opportunities across the board including enhanced private, hybrid and multi-cloud transformation projects through the addition of customer infrastructure in 33 data centres.

"We have demonstrated our ability to reset, recover and grow businesses of this nature by keeping things simple, and we are confident we will be able to replicate the success of the past couple of years with the acquired businesses."

Halpin said he was "very impressed" with the IDE Group Connect and Nimoveri teams, describing them as "exceptionally talented", adding they would complement the CloudCoCo group.

"To all our customers and partners across the enlarged group, I would like to reiterate the company's commitment to ensuring you receive the best possible experience when you choose to work with CloudCoCo, and to all colleagues - new and old - the chairman and board thank you for your support.

"The dedication and passion of our people has been fundamental to the real progress we have made so far and will continue to be as we move into this next exciting phase of development."

At 1156 BST, shares in CloudCoCo Group were up 2.9% at 1.6p.

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