CloudCoCo, an AIM-listed provider of IT and communications services, has agreed a deal to acquire a counterpart and undertaken a £2.1m fundraise.

The Warrington and Leeds-based business is set to acquire Systems Assurance, an IT group comprising a B2B value-added reseller and an automated cloud-based VAR and IT managed service provider.

Unaudited results showed Sheffield-based Systems Assurance generated revenue of £6.09m for the year ending 31 December 2020 and an adjusted EBITDA of £209,000.

The net consideration for the acquisition is £830,000 in cash (£1.58m gross), subject to adjustment, and the grant of warrants over four million ordinary shares.

To fund the acquisition, CloudCoCo has raised £2.1m before expenses through a conditional placing arranged by Allenby Capital of 210,000,000 new ordinary shares at a price of 1 penny per share.

CloudCoCo said the deal marked the start of its 'Get Bigger' phase, with growth targeted both organically and through acquisition.