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GIGAS BUYS AHT AND MOVES INTO PORTUGAL


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Integral service around a transaction
BY : Diego GutiérrezNovember Fri, 2019

Gigas is a Spanish company, specialised in Cloud Computing services, which has just acquired the 100% from Portuguese cloud service provider AHP.

The advantages of cloud computing are beyond doubt. Without the need for large storage capacity and at a low cost, data is always protected and can be accessed at any time, from anywhere.

As a result, more and more companies are moving into the sector, as evidenced by the movements in their corporate finances.

GIGAS

It is a Spanish company based in Madrid and listed on the MAB.

Specialised in Cloud Computing services, it has a workforce of close to 100 employees.

It closed the first half of the year with a positive result of 155,000 euros, the second consecutive positive result after a profit of 119,000 euros between July and December 2028.

Turnover for the same period was €5.76m and EBITDA was €1.28m.

LANDING IN PORTUGAL

Gigas continues its strategy of inorganic growth to strengthen its position in the sector's business.

With this procurementThe new company, which was launched at the end of October, enters the Portuguese market and consolidates its position in the Iberian Peninsula to offer combined services to customers with operations in both countries.

Portugal is a country with good growth rates and limited competition.

With this transaction, Gigas also creates an optimal basis for new Portuguese-speaking markets for the online acquisition of new customers, such as, for example, Brazil.

Its price has been structured through the payment of a fixed amount (combination of cash and assumption of financial debt), and a variable amount subject to AHP's sales figures in Portugal in 2020, 2021 and 2022.

The fixed amount amounts to 1,7M€.

60% of this amount will be paid immediately, including the cancellation of a participating loan, while the remaining 18% and 22% will be deferred payments over twelve and twenty-four months, respectively.

As a variable amount, subject to the 2020, 2021 and 2022 sales of AHP in Portugal, Gigas may pay up to an additional €1 million over three years, starting in 2021.

The transaction will be financed entirely with resources available on the group's balance sheet and with bank debt, so the purchase will not entail any dilution for Gigas shareholders. 

THIRD PURCHASE

This is the firm's third purchase in less than two years.

In January 2018, it bought the Catalan company STV and in May 2018 it acquired Ability Data Services, a Colombian cloud hosting operator.

Nevertheless, Gigas plans to make further acquisitions in order to continue to grow both in its existing markets and beyond.

However, as long as they are larger than those already made.

AHP

AHP started its activity in 1999 and is based in Lisbon.

It was a pioneer in to offer managed services, hosting services and subsequently cloud services to Portuguese companies..

The company has around 80 new business customers and a team of 6 people, as well as a presence in 2 new datacentres in Lisbon and Porto.

In 2018, it turned over €1.18M, up 7% on 2017, and achieved EBITDA of €233,000, 19.7% of revenue.

For 2019, it is expected to contribute just under €200,000 to Gigas' consolidated revenue.

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