Cloudpoint Technology Bhd has entered into a binding term sheet for the acquisition of 75% equity interest each in Unique Central Sdn Bhd and Uniqcen Sales and Services Sdn Bhd (collectively, Unique Central Group) for RM26.8 million in cash.
“This strategic move positions Cloudpoint as a comprehensive and end-to-end solutions provider for data centre and cloud needs, allowing its existing and potential customers to source, build, and manage their infrastructure from a single provider,” it said in a statement today (Feb 6).
Unique Central Group has a proven track record as a data centre specialist, and it offers solutions in data centre infrastructure design, construction, integration, monitoring, and sustainability assessment.
The group said subject to the execution of the final sales and purchase agreement, the purchase consideration is RM26.8 million to be satisfied in cash.
“Half of this amount will be paid in equal proportion annually throughout a three-year profit guarantee period, contingent upon the fulfillment of profit guarantee conditions.
“Meanwhile, the vendors of the Unique Central Group will furnish a total profit guarantee of RM14.25 million for the next three years.”
Cloudpoint chief executive officer WH Choong expressed the significance of the acquisition, saying Unique Central Group’s expertise synergises well with our data centre solutions and is highly complementary to our data networking segment.
“It expands our offerings and enables us to deliver end-to-end data centre solutions, including green and sustainable offerings.
“With our combined expertise as a group, we can offer customers a seamless experience with data centre solutions, hybrid and multi-cloud solutions and cybersecurity solutions all under one roof,” he said.
Choong said the group is strategically positioning itself to capture a bigger market share in the growing data centre market, especially from the booming demand of hyperscale data centres currently being built in Johor as well as other potential and planned data centre investment from US tech giants and other cloud services providers.
He added: “This acquisition will contribute to group revenue and earnings, alongside recurring income streams from the Unique Central Group, thereby boosting our financial performance and enhancing shareholder value.”
