Gigas Hosting, S.A. acquired Ability Data Services for €2.6 million.
May 21, 2018
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Gigas Hosting, S.A. (BME:GIGA) acquired Ability Data Services for €2.6 million on May 22, 2018. The consideration will be paid by combination of cash, new Gigas shares, assumption of financial debt and a variable amount based on Gigas sales for 2018, 2019 and 2020 in Latin America. Gigas Hosting will pay €1.36 million in cash, of which 77% has already been paid and 23% is postponed to within 12 months, €0.3 million by issuance of 0.05 million new shares during the ordinary general shareholders’ meeting in June 2018 and assumption of financing contracts worth €0.32 million. In addition, Gigas Hosting will pay up to a maximum of $0.75 million (€0.64 million) in the years 2018, 2019 and 2020, if the turnover of Gigas in the region exceeds €4.8 million in 2017 to approximately €8.5 million in 2020 organically. The acquisition will be financed, for the most part, with current resources available in the Gigas balance sheet, stemming from the issuance of convertible and / or exchangeable bonds in April of 2018, fully subscribed by the Inveready Group.
Ability had turnover of €1.59 million in 2017. Ability Data Services Manager Joaquín Miranda will join Gigas Hosting and will assume the leadership for Latin America. Ability’s 13 employees will be absorbed by Gigas, which will be in charge of the commercial and technical management of the clients in Colombia. Ability’s infrastructure installed in a Datacenter in Bogot will be added to the datacenters of Gigas. Crea Inversión acted as financial advisor and Ernst & Young acted as an accountant to Gigas.
Gigas Hosting, S.A. (BME:GIGA) completed the acquisition of Ability Data Services on May 22, 2018.
Gigas Hosting SA is a Spain-based company engaged in the provision of cloud computing services. The Company focuses on offering cloud hosting solutions for business entities, such as small and medium enterprises (SMEs), designers, e-commerce and mobile application developers. Its product range comprises: Cloud Datacenter, which enables users to define and design virtual infrastructure; and Clound Virtual Private Server (VPS), a virtual scalable resource platform. Furthermore, It offers help in migration of customers technology and services to the cloud computing, as well as technical and commercial support services, 24 hours a day. The Company uses technology provided under global brand names, including Hewlett Packard (hp), NetApp, Cisco, Intel, and Microsoft, among others. The Company operates datacenters in Spain and the United States within Interxion and Terremark facilities.