Cloudcoco acquires Systems Assurance, raises £2.1m via share placing

IT firm Cloudcoco has acquired the entire issued share capital of Systems Assurance for £830,000 in cash and the grant of warrants over 4.0m ordinary shares.

Cloudcoco said on Tuesday that it had raised £2.1m before expenses through a conditional placing of 210.0m new ordinary shares of 1.0p each in order to fully fund the acquisition and provide additional working capital to fund the integration of the company into the group.

The placing was carried out at an approximate 13% discount to the company's closing price of 1.15p per share on Monday 16 August.

Cloudcoco highlighted that Systems Assurance, an IT outfit and IT managed service provider, generated revenues of £6.09m and adjusted underlying earnings of £209,000 in the year ended 31 December.

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."

As of 1005 BST, Cloudcoco shares were up 14.78% at 1.32p.