Managed services provider CloudCoCo has announced plans to sell its IT services business to Aspire in a £9.2 million ($11.9m) deal that will help the company pay off its debts. The company, which is based in Leeds, UK, added it is in advanced discussions to sell Connect, its data center business, which includes colocation and data center services delivered from 32 UK-based facilities.
Simon Duckworth, non-executive chairman at CloudCoCo, said: “The proposed sale of our IT managed services business marks a positive step for the group, enabling us to eliminate long-term debt and focus on expanding our value-added reseller operation, particularly in e-commerce, where we see significant opportunity. Alongside this, we are in advanced discussions for the sale of our Connect business to further strengthen our financial position and streamline our proposition.”
The company has been working to refinance its loans, including loan notes with MXC Guernsey Ltd, which were originally due to be repaid in October 2024. The company said that as a result of customers rationalizing physical and on-premise services, it had seen a steady downturn in new connectivity and data center opportunities.
At the time, interim CEO Ian Smith said the results did not "reflect the period of my tenure," but said they highlighted "a number of the challenges that the business faces and which we will work on resolving to ensure the company can meet its liabilities and is able to look to the future with confidence.”
