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Acquisition expands Climb's reach in Ireland and the UK, while strengthening Product Offerings in Digital Workspace, Networking, Hybrid Multi-Cloud, and Cyber Security
Transaction Expected to be Accretive to Earnings and Adjusted EBITDA
EATONTOWN, N.J., Oct. 09, 2023 (GLOBE NEWSWIRE) -- Climb Global Solutions, Inc. (NASDAQ:CLMB) ("Climb" or the "Company"), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, has completed the acquisition of DataSolutions Holdings Limited ("DataSolutions"), a leading specialist distributor of innovative IT and security solutions in Ireland and the UK, for an aggregate purchase price of $16.3 million (€15.4 million) payable at closing (subject to working capital and other adjustments), plus a potential post-closing earn-out. The Company funded the acquisition of DataSolutions utilizing cash from the Company's balance sheet.
DataSolutions is an Ireland-based, specialist IT distributor serving the Irish and UK reseller markets. DataSolutions brings its robust share of the Irish and UK markets to Climb, with 14 carefully selected blue-chip vendor partners, including Check Point, Citrix, Neustar, HPE Aruba, IGEL and ColorTokens. For its fiscal year ended March 31, 2023, DataSolutions reported adjusted EBITDA of approximately $3.3 million (€3.2 million), which was up double-digits from the prior fiscal year.
"The acquisition of DataSolutions builds upon our goal to strengthen our line card with new strategic, cutting-edge technology vendors and bolsters our geographic footprint in Western Europe," said Climb CEO Dale Foster. "The composition of their line card is highly conducive for cross-sell opportunities, which will enable us to build greater depth with our partners and position Climb as the distributor of choice for resellers. Further, DataSolutions has established a robust recurring revenue base, with more than 90% of its fiscal 2023 revenue coming from existing reseller partners. We expect this acquisition to be immediately accretive to earnings, while enhancing our gross profit and adjusted EBITDA margins, thus advancing our profitability objectives while fortifying our foundation for long-term growth."
Commenting on the acquisition, DataSolutions Managing Director Michael O'Hara stated: "Since DataSolutions' inception over 30 years ago, we have worked tirelessly to establish and maintain our best-in-market reputation for distribution and services. Climb's commitment to a focused line card and track record of rigorous brand evaluation aligns with the standard of quality our customers have come to expect. The future of DataSolutions is in excellent hands under the leadership of Dale Foster as it integrates into Climb's global platform."
Additional information can be found in Climb's Current Report on Form 8-K to be filed with the Securities and Exchange Commission on October 10, 2023.
Posted In: CLMB
