1st Oct 2018 08:35
LONDON (Alliance News) - Computacenter PLC on Monday said it bought IT solutions provider FusionStorm for USD70 million.
The FTSE 250-listed IT infrastructure services provider said it will pay up to an extra USD20 million in cash, depending on the levels of adjusted earnings before interest, taxes, depreciation, and amortization and gross profit achieved by FusionStorm over the 15-month period after transaction.
Computacenter will contribute a further USD45 million into FusionStorm to refinance existing facilities.
For the year to the end of 2017, FusionStorm delivered pretax profit of USD3.9 million on revenue of USD595.5 million. Computacentre said it expects FusionStorm's Ebitda to improve to USD12.1 million on a proforma adjusted basis compared to USD9.8 million reported a year prior.
Computacenter intends to fund the purchase through its debt facility of GBP100 million.
The company plans to integrate its existing US business with FusionStorm, leading to the current Computacenter employee headcount in the Americas region to increase by 50% as a result of the transaction.
"This transaction broadens our capability to serve our international customers and should enhance our existing customer offer and reach into the US marketplace whilst providing an opportunity to improve the long-term prospects for the employees of FusionStorm and Computacenter US," said Computacenter Chief Executive Mike Norris.
Computacenter shares were up 1.9% on Monday at 1,290.00 pence each.
Related Shares:
Computacenter