Cloudpoint chief executive officer Choong Wai Hoong said the proposed acquisitions of Unique Central Sdn Bhd and Uniqcen Sales & Services Sdn Bhd are expected to contribute positively to the future earnings and improve the financial position of Cloudpoint.

KUALA LUMPUR (Feb 6): Information technology solutions provider Cloudpoint Technology Bhd is acquiring a 75% equity interest each in Unique Central Sdn Bhd (UCSB) and Uniqcen Sales & Services Sdn Bhd (USSSB) for a total of RM26.78 million cash.

UCSB is principally engaged in supplying, delivering and installation of data centres, data cabling, fibre optic works, as well as mechanical and electrical services, while USSSB is an electrical contractor.

In a filing with Bursa Malaysia on Tuesday, ACE Market-listed Cloudpoint said it has entered into a binding term sheet with sellers — Foo Choy Lim, Wong Wee Kiong and Tan Ki Lok — to negotiate the detailed terms and conditions to be contained in a definitive agreement to be executed in relation to the proposed acquisitions.

Cloudpoint is acquiring 562,500 shares, equivalent to 75% of UCSB's enlarged equity interest, from Foo and Wong for RM14.49 million. It is also buying 75,000 shares, representing 75% of USSSB's enlarged equity interest, from Foo, Wong and Tan for RM12.29 million.

Cloudpoint believes that the proposed acquisitions will allow the group to offer end-to-end data centre, hybrid cloud and multi-cloud solutions, as well as green and sustainable data centre solutions to its customers. Cloudpoint’s customers will be able to source, build and manage their data centres including cyber security solutions, from a single solutions provider following the proposed acquisitions.

It will also allow Cloudpoint to expand its offerings, increase its revenue and earnings and grow additional recurring income streams to enhance the group’s profitability and shareholders’ value.

The proposed acquisitions involve Foo and Wong providing a profit guarantee of RM7.4 million for UCSB for the financial years ending 2024, 2025 and 2026 on an aggregate basis to Cloudpoint, while Foo, Wong and Tan will provide a profit guarantee of RM6.85 million for USSSB on an aggregate basis to Cloudpoint for the three financial years.

Additionally, the completion of the proposed acquisitions is subject to, among others, the net tangible asset of UCSB and USSSB as at the completion date of the share sale agreement for the proposed acquisitions will not be less than RM7.14 million, and that the sellers complete the acquisition from UCSB and USSSB of three units of shoplot offices currently being utilised as the headquarter of the two companies.

In a separate statement, Cloudpoint chief executive officer Choong Wai Hoong said the proposed acquisitions are expected to contribute positively to the future earnings and improve the financial position of Cloudpoint.

The proposed acquisitions are subject to the approvals being obtained from the board of directors and its shareholders.

M&A Securities Sdn Bhd has been appointed as the principal adviser for the proposed acquisitions.

Cloudpoint shares closed unchanged at 51.5 sen on Tuesday, giving it a market capitalisation of RM271.14 million. The counter has fallen 6.36% so far this year, but only slightly by 0.96% over the last one year.