Cloud computing services provider Nasstarís acquisition of e-know.net has broadened its customer base and range of products.
Nasstar paid £12.35m in cash and shares for e-know.net and it raised £10.5m from a placing at 5p a share. The share price rose 0.5p to 6.63p on the day that the reverse takeover was completed.
Both companies provide hosted desktop services for businesses with Nasstar focused on smaller businesses and e-know.net has larger customers. In 2012, Gartner forecast that there would be 77m users of hosted desktops around the world by 2016.
One recruitment client provides 19% of e-know.netís revenues. The recruitment, legal and financial sectors are the main focus of the business. Nasstar uses third party datacentres but the acquisition brings its own datacentre in Telford which has plenty of spare capacity.
Nasstar has been loss-making but the combined business should move into profit this year. The year end is being changed to December and the first figures for the enlarged group will be to December 2014. Revenues of £10.3m and a profit of £800,000 are forecast. That would put the shares on a multiple of more than 30 times prospective 2014 earnings.
Download the latest AIM Journal from http://wwww.hubinvest.com/AIMPDFDecember2013_51.pdf
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.