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Let's wait and see investrip......AD4's current revenue is £8.2m and CC achieved almost £4m of new client contracts in their first year of trading , up to April 2019......since then they announced in September that they have won a 29th share of the fast track £400m Public Sector network deal, which equates to £14m and have also stated that they have recently signed up two new VERY LARGE and exciting new client contracts, which could be worth significant value with huge potential , and will be made public on deal completion. The new enterprise has no debt and so combined with existing customer revenue and more to be announced , 10p could look decidedly modest in the coming weeks. Gla Holders.....;-)

 The enlarged share capital on the merger against the current sp would equate to a combined market cap of only £13.8m with no debt, and so Cloudcoco's 29th share of the £400m Public Service fast track datacentre deal alone , covers the current projected valuation, and with AD4 and Cloudcoco's existing business and potential new business in the pipeline ( two new VERY large and exciting new client contracts ) 10p and a market cap of £44.5m could look decidedly modest in the coming weeks imho. Gl ;-)

3.8p paid for 100k's worth at 16.11pm....Gla ;-)

Computer Weekly

Published: 02 Oct 2019 14:51

Managed service player Adept4 has bolstered its operations after making a move to acquire fellow IT hardware and services player CloudCoCo.

The deal valued at £6.1m will be put to a shareholder vote at a general meeting on 21 Oct, with the name also being changed at that point to CloudCoCo Group.

CloudCoCo is a couple of years old and was set up by former sales directors from Redcentric but has already indicated that it can win business and has a management team that clearly appeals to Adept4.

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) concentrating on existing customers of the Enlarged Group.

The acquisition comes on the back of a fairly mixed year for Adept4 after the firm lost a key contract, which it legally contested, back in April and embarked on a cost cutting programme to improve the fortunes of the business.

Back in June the firm shared interim half year numbers for the six months ended 31 March that showed that revenue of £4.2m was down from £5.4m in the same period last year and its losses had increased from £0.8m to £1.1m.

The business has been looking to reduce its costs and made it clear that the priorities for now are on serving the existing customer base rather than putting resources behind new business generation. Efforts made to reduce costs have managed to cut overheads by around £75,000 a month.

In information sent to shareholders Adept4 made it clear that it viewed the acquisition as the best opportunity for the firm to return to strong 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 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," he added.

There has already been plenty of consolidation in the channel this year, particularly in the managed services space, as firms look to expand their portfolio of services and get themselves into a position to meet the widening demands of customers looking for digital transformation support.

Cloudcoco's £400m fast track public sector data center deal potentially could be worth many millions, a 29th supplier share equates to £14m, and then there's two very large and exciting new client contracts in the bag....and along with Clodcoco's and AD4's existing business and new business in the pipeline, confirmation of deal completion in a couple of weeks should see significant upside, and then disclosure of Cloudcoco's two very large and exciting client contracts should quickly follow...Ker-Ching!!!.....Gla holders. :-)

YPO link to Cloudcoco £400milllion live framework

CloudCoCo

CloudCoCo are proud to be GO GO with YPO (one of the largest public sector frameworks in the UK). We are listed on Lots 5 and 10 which essentially now gives any public sector organisation an opportunity to procure Data Centre space, Maintenance, Cloud and Security through CloudCoCo and its unique ecosystem on this very exciting and highly successful not for profit framework.

Thankyou to YPO for all the hardwork and trust you've shown in one of the fastest growing Technology startups in the UK.

CloudCoCo are making IT possible.

We've also news coming in the coming weeks about two new very large and exciting new clients we've signed.

#cloud #data #datasecurity #publicsector

https://www.linkedin.com/company/cloudcoco

CloudCoco

@cloudcoco1

·

24m

Onto the next chapter in our exciting journey, helping revitalise the managed IT industry and treat people with the respect and passion that they deserve from their IT supplier. Adept4 plc and CloudCoCo #thefuturestartsnow

https://lnkd.in/gESTVrz

Ps looking at the timing..... the £18.8k trade was a buy. Gla :-)

Warrington-based Adept4, which provides managed and professional services to UK SMEs, has said it intends to buy CloudCoCo for a total value of £6.1m.

The consideration for the acquisition will be funded by debt, which upon completion of the transaction will be exchangeable for ordinary shares in the enlarged company. This would represent c49% of total shares. The enlarged entity will be renamed CloudCoCo Group.

It’s been tough times for Adept4 - most recently here: Adept4 still suffering and previously here: Adept4 closes a very “challenging year”, and shares leapt on the news of the acquisition - up 20% at time of writing. What is particularly notable is that Adept4 will gain a very experienced business development team, led by Mark Halpin, CEO and founder of CloudCoCo.

The failure of Adept4’s own team to win new business has haunted the firm, and the CloudCoCo sales people will be at the heart of the company’s drive for profitable growth. CloudCoCo Group will be targeting multi-year contracts and will be looking to expand its ecosystem of partners.

CloudCoCo only began trading in April 2018 (founded by former directors of Redcentric), and was backed by an initial investment by MXCG (a wholly owned subsidiary of MXC Capital Ltd) giving it a c11% shareholding. Shortly before the company entered into the acquisition agreement with Adept4, MXCG sold this shareholding to CloudCoco’s Chairman, Andy Mills, who is set to become the new CEO of the enlarged entity on completion. Adept4 has entered into a Debt Refinancing Agreement, with MXCG purchasing loan notes held by BGF. 

The future of the enlarged firm is very much dependent upon the plans put in place by its new CEO and the performance of the new sales team. We welcome the move and look forward to seeing how things progress in the months ahead.

Until deal completion, CloudCoCo's are a private company and are under no obligation to reveal who their two new very large and exciting new client contracts are.....when the deal is confirmed following shareholder approval, then CloudCoCo 's two new client contracts will then be disclosed.....which could add considerable value, if indeed they are very large and exciting as CloudCoCo state....Gla holders Exciting times. :-)

Ps CloudCoCo 's 29th share of the £400m fast track public sector data center network is a game changer in itself. ;-)

Cloudcoco have recently described themselves as the "UK's fastest growing IT Company" and AD4 stated "Though only recently established, CloudCoCo is already trading profitably and has a strong and growing pipeline." ....Cloudcoco also announced in April on twitter.... "Cloudcoco April 2019...Our first year has seen us secure close to £4million of contracts with over 30 new customers. #Proud of my amazing team as this is all from a standing start."

( can you imagine the upside value on a newly listed AIM small cap announcing 30 new contracts to the value of £4m in their first year )

Additionally, Cloudcoco also announced last month that they are one of 29 suppliers chosen for the "fast track" share of the £400m UK's Public Sector DataCenter framework programme, which alone equates to a potential £14m and no doubt will offer many more business contract opportunities as a result.

At the same time, Cloudcoco also announced.... "We've also news coming in the coming weeks about two new very large and exciting new clients we've signed."

No doubt these two new client contracts will be announced following acquisition deal completion, and so potentially could add considerable upside and value.

There will only be 12.6% shares in free float on deal completion, 57m shares only from the new enlarged share capital with the rest firmly held by Directors, Major shareholders and CloudCoCo.

The potential UPside and new market value on a debt free enterprise, with their plan to drive growth from both Adept4's existing customer base and CloudCoCo's own customers and pipeline, could be considerable and undoubtedly the current bargain low sp offers a tremendous opportunity for significant returns imho....Gla Holders....Excitement building!!! ;-)

A done deal, and a name change to CloudCoCo presumably, and then news of CloudCoCo's "two new very large and exciting new clients they've recently signed" to be annoucned following shareholder approval.....Gla Holders...Transformational times ahead!!! ;-)

Simon Duckworth, Non-Executive Chairman of Adept4, commented:

"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 and, 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 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".

adept4 plc Acquisition and Notice of General Meeting
02/10/2019 7:00am
UK Regulatory (RNS & others)

Adept4 (LSE:AD4)
Intraday Stock Chart

Today : Wednesday 2 October 2019
Click Here for more Adept4 Charts.

TIDMAD4

RNS Number : 4291O

adept4 plc

02 October 2019

Adept4 plc

("Adept4", the "Group" or the "Company")

Proposed acquisition of CloudCoCo Limited, proposed issue of 218,160,586 new Ordinary Shares, proposed change of Company name, Accelerated Rule 9 Waiver and Notice of General Meeting

Adept4 (AIM: AD4), the AIM quoted provider of IT as a Service, announces that, on 1 October 2019, the Company conditionally agreed to acquire, through its wholly owned subsidiary Adept4 Holdings Limited, the entire share capital of CloudCoCo Limited, a cloud, IT hardware, and IT services company. The consideration for the Acquisition is to be satisfied through the issue to the Sellers of loan notes in Holdings, such loan notes to be exchangeable immediately upon Completion for 218,160,586 Ordinary Shares in the Company.

The Company will shortly be posting a circular ("the Circular") including a Notice of General Meeting to Shareholders, at which Shareholders will be asked to approve resolutions for the issue of the Acquisition Shares and, conditional on Completion, a change of the name of the Company. The General Meeting will be held at 10.00 a.m. on 21 October 2019 at the offices of DAC Beachcroft LLP, The Walbrook Building, 25 Walbrook, London EC4N 8AF.

The Circular will also be made available to view on the Company's website www.adept4.co.uk. Should Shareholder approval not be obtained at the General Meeting for the resolutions enabling issue of the Acquisition Shares, the Acquisition will not proceed.

The Circular includes a letter from Simon Duckworth, the Company's Non-Executive Chairman, explaining, inter alia, the reasons for the Acquisition and why the Directors consider the Acquisition to be in the best interests of the Company and Shareholders as a whole and recommend that Shareholders vote in favour of the Resolutions to be proposed at the General Meeting.

Furthermore, the Circular also contains details of the Debt Refinancing Agreement, under which, inter alia, BGF has agreed that GBP1.5 million of the loan notes currently held by it will be cancelled and the remaining GBP3.5 million loan notes will be purchased by MXCG (a wholly owned subsidiary of MXC Capital Limited) and their terms revised. The Company also announces, subject to satisfactory completion of the relevant regulatory checks, the proposed appointment on Completion of Andy Mills, current chairman of CloudCoCo, as Adept4's Chief Executive Officer.

Simon Duckworth, Non-Executive Chairman of Adept4, commented:

"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 and, by harnessing CloudCoCo's proven and expe

Lol , yep usually they are , although occasionally news does follow. I've seen plenty of code 1's but never a code 2 as far as i remember....so watch this space.....especially that news is now due and could drop at anytime ...Gla holders...Game Changing news coming soon... On and Up!!! :-)

Share code 2...!!!??? :-) C'mon AD4....let's have it!!! :-)

Why Smart Investors Buy::Adept4 Plc, The United Kingdom, (LSE:AD4.LN)
September 27, 2019 NS TEAM

https://newssoloution.com/2019/09/27/why-smart-investors-buyadept4-plc-the-united-kingdom-lsead4-ln/

AD4's Financial Year ends on Monday 30th September, and so maybe a timely opportunity for news of their new finacial year ahead......Gla ;-)

4p plus and more will go in a blink on the next Rns, expected imminently, confirming formal approval on Cloudcoco's acquisition from the Panel of Mergers and Take overs and a date for the GM for shareholders approval.

The acquisition of Cloudcoco will be a complete game changer and transformational for AD4 and all invested, and will very likely result in a name change for the company from AD4 to Cloudcoco imho.

Cloudcoco have recently described themselves as the "UK's fastest growing IT Company" and AD4 stated "Though only recently established, CloudCoCo is already trading profitably and has a strong and growing pipeline." ....Cloudcoco also announced in April on twitter.... "Cloudcoco April 2019...Our first year has seen us secure close to £4million of contracts with over 30 new customers. #Proud of my amazing team as this is all from a standing start."

( can you imagine the upside value on a newly listed AIM small cap announcing 30 new contracts to the value of £4m in their first year )

Cloudcoco also announced last month that they are one of 29 suppliers chosen for the "fast track" share of the £400m UK's Public Sector DataCenter framework programme, which alone equates to a potential £14m and no doubt will offer many more business contract opportunities as a result.

At the same time, Cloudcoco also announced.... "We've also news coming in the coming weeks about two new very large and exciting new clients we've signed."

No doubt these two new client contracts will be announced following acquisition deal completion, and so potentially could add considerable upside and value.

MXC ( AD4's Major shareholder ) has agreed to buy £5m of Adept4 unsecured loan notes for a discounted price of £3.5m from The British Growth Fund on completion of the Cloudcoco acquisition. This is the only debt Adept4 has. The fact that MXC will now own the loan notes, which are due to mature between 2021 and 2023, is a positive move as it removes the financial risk that was subduing Adept's share price.

There will only be 12.6% shares in free float on deal completion, 57m shares only from the new enlarged share capital with the rest firmly held by Directors, Major shareholders and CloudCoCo.

The potential UPside and new market value on a debt free enterprise, with their plan to drive growth from both Adept4's existing customer base and CloudCoCo's own customers and pipeline, could be considerable and undoubtedly the current bargain low sp offers a tremendous opportunity for significant returns imho....Gla Holders....Excitement building!!! ;-)

Bye bye sub 3p....:-)

It's going to be very interesting and potentially transformational when we hear who CloudCoCo's " two very large and exciting new client contracts " are...confirmation of acquisition deal completion will be a game changer and will no doubt add significant value and news of Cloudcoco's two new clients could add considerable value thereafter...Gla holders Excitement building!!!:-)