Business & Leadership

EY Colombia Advises Gigas on Ability Acquisition

EY Colombia has advised Gigas Hosting S.A in the acquisition of Ability Data Services, an operator of cloud hosting services in Colombia. The transaction strengthened Gigas’ commercial position in LatAm, bringing new business clients and an operational base in the region; as well as a new data center in Bogotá.

EY Colombia has advised Gigas Hosting S.A in the acquisition of Ability Data Services, an operator of cloud hosting services in Colombia. The transaction strengthened Gigas’ commercial position in LatAm, bringing new business clients and an operational base in the region; as well as a new data center in Bogotá.


Gigas Hosting, a Madrid-based international cloud computing services company, is one of the leading cloud hosting providers in Spain and in other Spanish-speaking countries such as Colombia, Peru and Panama, among others. In 2014, Gigas became the first operator of cloud services in Spain and LatAm to obtain the infrastructure operations services certification from SAP, to host the applications of software in the cloud.

 

Initially, Ability was dedicated to the enterprise resource planning (ERPs) implementation market, although in the past four years it has focused on the provision of cloud hosting services in which it has grown significantly, having invoiced over €1.59m in 2017, 35% more than in 2016. Gigas is expected to obtain revenues of €1.63m during this year.

 

Current Ability’ manager, Joaquín Miranda, will lead the business in the region as a director for LatAm. Ability has a team of 13 people in Bogota who will join the other six that Gigas already has in the country. The team will be in charge of the commercial and technical management of the clients in Colombia.

 

The transaction involved the payment of a fixed amount and a variable amount subject to the sales figures of 2018, 2019 and 2020 that the Gigas Group obtains in the LatAm region. Gigas will pay a cash amount of €1.36m, of which 77% has already been paid with 23% deferred for one year. An additional €3m through the delivery of new Gigas shares, will be issued at the next ordinary general shareholders' meeting to be held in June, at a price of €6.34. The transaction will therefore include 47,318 newly issued Gigas shares, which represents just over 1% of the total shares issued. The fixed part also includes the assumption of financing contracts for computer equipment worth up to €320,000.

 

The acquisition will be financed using available resources in the balance sheet of Gigas, from the issuance of convertible and exchangeable bonds of April this year subscribed by the Inveready Group.

 

EY Colombia and Crea Inversión acted as legal advisers for the purchaser. EY team was led by partners Ximena Zuluaga and Carlos Sandoval, assisted by managers Juan David Sanint and Alejandra Fernández and senior manager Diego Vega.  

 

C.G.L.

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