Business
Acquisition of adept4 Limited
Acquisition of adept4 Limited.
About this update from Cloudcoco Group Plc
[{"type":"text","content":"\n \nRNS Number : 4751Z Pinnacle Technology Group PLC 27 May 2016 \n\nPinnacle Technology Group plc \n(the \"Company\", \"Group\" or \"Pinnacle\") \n \nAcquisition of adept4 Limited\n£5m funding from the Business Growth Fund plc\nProposed Change of Name \nNotice of General Meeting\n \nPinnacle Technology Group plc, the AIM listed provider of 'IT as a Service', is pleased to announce that it has acquired the entire issued share capital of adept4 Limited (\"adept4\"), a provider of cloud based IT services and solutions headquartered in Warrington (the \"Acquisition\"), funded through the issue of £5 million of unsecured loan notes to the Business Growth Fund Plc (\"BGF\"). Pinnacle also announces the Company's intention to change its name to adept4 plc. \nHighlights\n· adept4 provides IT as a Service encompassing fully managed IT service contracts, cloud based services, professional services, software support and development\n· Dedicated, ITIL aligned, 24x7x365 service desk\n· A Tier 1 Microsoft SPLA and Cloud Service Provider with a track record in the adoption of Microsoft Azure plus partner status with leading technology vendors such as Cisco, Veeam and VMware\n· c. 60 customers with average contract lengths of three to six years \n· A strong management team with experience of both organic and acquisition growth all of whom remain in the business\n· In the year to 31 December 2015 adept4 generated revenue of £5.0 million and EBITDA of £0.75 million\n· 67% recurring revenue, expected to increase due to a growing long term support contract base and organic growth\n· Strong free cash flow generation in excess of 90% of EBITDA\n \n· Initial consideration of £4.5 million satisfied in cash plus deferred consideration of £1 million in cash, payable in January 2018. Further contingent consideration of up to £1.5 million in cash payable in March 2018, subject to performance criteria for the year to 31 December 2017\n \n· Acquisition part financed through issue of £5 million loan notes to the BGF with an associated option to subscribe for shares at a price of...