CloudCall’s directors have unanimously recommended an all cash offer for the business to shareholders, valuing the company at £39.9 million.
The Leicester-based firm has reached an agreement with Xplorer Capital Growth I, LLC (Xplorer Capital), a newly formed company owned by funds managed and advised by Xplorer Capital Management LLC.
Under the terms of the acquisition, CloudCall shareholders will be entitled to receive 81.5 pence for each CloudCall Share.
Xplorer Capital believes that CloudCall would benefit from returning to private ownership with the support of a growth-focused shareholder.
It intends to provide the capital and long-term view of value creation to enable the management team to make the necessary investment in working capital to upgrade its technology platform, improve and expand product capabilities, and greatly expand and enhance the company’s sales capacity.
Keith Nilsson, founder and managing partner of Xplorer Capital Management LLC, said: “We are delighted to have reached agreement on the terms of the acquisition with the board of CloudCall.
“We believe CloudCall would benefit from returning to private ownership with the support of a growth-focused shareholder and look forward to accelerating the growth of the business and helping it to reach its full potential by providing CloudCall with access to significant additional capital resources.”
Peter Simmonds, non-executive chairman of CloudCall, said: “Over recent years, the management of CloudCall has continued to develop its product mix, enhanced its client base and positioned itself for growth.
“However, CloudCall operates in a highly competitive environment where many of its peers are larger and better capitalised and CloudCall will require additional funding to continue to support its strategy and remain competitive.
“Against this backdrop, I believe the offer from Xplorer Capital represents an attractive premium, provides certain value today for CloudCall shareholders and provides CloudCall with the opportunity to access significant further capital to implement CloudCall’s strategy in the future.”
