Warrington-based CloudCoCo has pivoted into growth mode with the acquisition of Assurance Systems.
CloudCoCo has spent the last two years in self-titled ‘Get Well’ and ‘Get Fit’ phases to shake off the financial frailties of the legacy Adept4 business, but according to CEO Mark Halpin, this buy signals the start of phase 3, ‘Get Bigger.’
He said: “This acquisition moves us into the next step of our development which will see us focus on scaling the business while winning larger and longer contracts. A key focus in the short-term is to explore more M&A activity.”
System Assurance is an £8m turnover IT Group comprising a B2B VAR, an automated cloud-based VAR and an IT MSP. Its acquisition will help CloudCoCo broaden its product range and streamline its processes.
The consideration for the acquisition is £1.58 million gross. CloudCoCo has also proposed fundraising of £2.1 million before expenses through a conditional placing.