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On October 14, 2019, representatives of the CANCOM Group and Novosco Group Limited signed a purchase agreement for the acquisition of the Novosco Group by CANCOM. Novosco Group is an IT service provider based in Belfast, United Kingdom, with offices in Dublin, Republic of Ireland and Manchester, United Kingdom. The company mainly supports its customers with managed services and cloud-based services, as well as providing IT consulting and support.
"Novosco's product portfolio extends our capabilities tremendously and the customers we serve complement each other perfectly. Virtually all Novosco customers have no business connection to us yet. In addition, the transaction gives us direct market access in Ireland for the first time, and around 300 specialist staff and a highly profitable business will join CANCOM. We are very excited about this acquisition," said Thomas Volk, CEO of CANCOM SE.
Patrick McAliskey and John Lennon, Directors of Novosco Group Limited said: “This is a hugely positive and exciting development for Novosco, our people, our clients and the communities in which we operate, bringing together two companies with very complementary expertise and very similar cultures, ambitions and outlooks”.
“CANCOM is a world-class business with a global reach that sees the addition of Novosco’s people, expertise and client-base as a core part of its strategy for growth. The combined specialisms, resources and skills of the two businesses creates a very strong platform from which to further enhance the service we provide to our existing clients and to challenge for new and exciting contracts.”
Prior to the transaction, Novosco Group planned to achieve revenues of approximately GBP 55 million and an EBITDA margin of approximately 17 percent in fiscal year 2019. The total volume of the acquisition is approximately GBP 70 million.
Acquisition supports strategic transformation of CANCOM Group
The integration of Novosco will further expand the CANCOM Group's managed services capacities. This supports the overall corporate strategy, strengthens the managed services business and creates a dynamic increase in annual recurring revenue.
At the same time, the takeover will enable the company to secure new qualified employees in the highly competitive IT specialist market as well as promising new locations such as Belfast. CANCOM had already responded to the growing demand for personnel and the necessary international presence for the growing Managed Services business by setting up a new branch in Kosice, Slovakia, in the summer.