SGX-Catalist listed DeClout Limited (“DeClout” or together with its subsidiaries, the “Group”), has today announced that DeClout and its wholly-owned subsidiary, Acclivis Technologies and Solutions (“Acclivis”), has entered into a sale and purchase agreement to acquire 100% shareholding of OSINet Communications Pte. Ltd. (“OSINet”) for a consideration of approximately S$14.2 million to be satisfied through the issuance and allotment of DeClout shares (“Proposed Acquisition”). The Proposed Acquisition enables Acclivis to scale the backbone of its existing network capabilities, equipping it with its own Internet Service Provider (ISP) licence, along with the staffing, technical know-how and experience to provide dedicated regional networks to companies across Asia Pacific.
OSINet is an Information & Communication Technology (ICT) company specialising in internet broadband and network connectivity, managed services, hosting and data centre services in Singapore. OSINet owns a local ISP licence and posted revenue of approximately S$5.5 million and a gross profit margin of 47% for the last financial year ended 31 March 2014. It has now more than 600 service contracts with more than 400 corporate customers. Since its incorporation in 2010, OSINet has grown its revenue by more than 60% year on year.
We are delighted to welcome OSINet into the Acclivis family. OSINet’s capabilities in ISP and managed services will equip Acclivis with the ability to provide carrier-neutral and high-performance network connectivity to companies, enabling them to connect to cloud and enterprise workloads on-demand. The Proposed Acquisition further enhances the value we bring to our customers as we now offer both the network and the management of this network connectivity under one service level agreement. As businesses increasingly seek an end-to-end solutions provider, we believe the Proposed Acquisition is integral to our overall market strategy, and further differentiates Acclivis as one of the few leading regional providers that offers a complete suite of managed services
We are excited and honoured to join Acclivis to deliver one of the best-in-class managed services in the region. Leveraging on Acclivis’ strengths in data centre and cloud computing, we expect to strengthen OSINet’s capabilities to deliver an integrated cloud and data experience for enterprise users.
The Proposed Acquisition has great synergy with the Group’s existing portfolio in terms of service offerings and customer bases, enabling us to maximise scalability, cost efficiency and flexibility across our businesses. They are highly strategic to the Group’s continued expansion plans in being one of the leading cloud and data centre players. Furthermore, the Proposed Acquisition is particularly significant in gearing Acclivis to become a substantial group under DeClout and to have a good footing to create more meaningful returns to our shareholders in the near future.
Founded in 2009, Acclivis is one of the leading ICT providers in Asia Pacific offering cloud, technology and managed services to enterprise clients. It was recently awarded the MultiTiered Cloud Security (MTCS) certification by the Infocomm Development Authority of Singapore, and the IT-as-a-Service Partner of the Year 2014 in Asia Pacific by independent analyst firm Canalys. Acclivis’ clients include major multinational corporations, regional companies and government bodies. Currently, it runs network operations over four data centres with a commitment to grow its data centre footprint in Asia Pacific over the next three years.