Singapore’s DeClout globalises business via US-based Procurri acquisition
By Digital News Asia October 1, 2013
- DeClout, through its wholly-owned subsidiary Asvida USA LLC, acquired a 50.1% stake in Procurri in April
- Acquisition allowed DeClout to globalise IT asset recovery and independent maintenance services businesses
SGX-Catalist listed DeClout Limited and US-based Procurri LLC, an IT maintenance services and asset recovery solutions provider, have agreed on a strategic collaboration.
The collaboration will bring about synergies in operations, business development and financial resources to help DeClout grow and realise its full potential, the Group said in a statement.
In April, DeClout, through its wholly-owned subsidiary Asvida USA LLC, acquired a 50.1% stake in Procurri. The acquisition has allowed DeClout to globalise its IT asset recovery and independent maintenance services businesses by leveraging on the experience of the current management team at Procurri, and to extend its presence to North American markets.
Following the acquisition, DeClout’s overseas revenue increased from 1% of total revenue in the first half of 2012 to 20% in the first half of 2013.
Procurri, a subsidiary of DeClout, contributed S$5 million (18%) to the Group’s total revenue in the first half of 2013 with just three months of operations from April to June 2013.
[S$1 = US$0.80]
“The acquisition marks an important first step by the Group in diversifying our revenue overseas and developing ourselves to be a global player,” DeClout chairman and group chief executive officer Vesmond Wong said in the statement.
“[We are] already seeing tangible benefits from this business venture and economies of scale as a result of the acquisition.
“[Our] fast-track growth strategy, fuelled by the accelerated overseas venture, has enhanced our ability to deliver our value-added IT and technology services globally. It has enabled the Group to reach a much wider customer base and provide an even higher level of service.
“In the long-term, this should provide improved value to shareholders,” Wong (pic) added.
DeClout (http://www.declout.com/) provides what it calls Vertical Domain Clouds (VDCs), self-contained and scalable ecosystems or communities, with the first being a games ecosystem whose infrastructure, gamers’ community portal and unified payment network will address the burgeoning online games market in South-East Asia.
Drawing on its complementary IT infrastructure services, it intends to create diverse VDCs that would serve the needs and aspirations of different businesses and user communities, DeClout said.
It said it now operates out of Singapore, Malaysia, Indonesia, the United States and China.
“DeClout is a young and innovative next-generation technology services provider with a proven track record in Asia,” said Procurri CEO Sean Murphy.
“Already, there is great synergy between our service offerings, employees and corporate strategies, and we share DeClout’s vision of being a market leader in the industry and an independent service provider offering scalable and customised solutions that reap economies of scale for our customers.
“Our collaboration is very logical and natural,” he added.
Launched in 2013 and headquartered in Atlanta, Georgia, Procurri (http://www.procurri.com/) is a global single-source provider of customisable IT solutions. It provides enterprise-class data centre hardware to industries from financial services to telecommunications.
“According to International Data Corporation’s predictions, the market for used IT equipment in the United States alone stands at US$70 billion in 2013,” said DeClout’s Wong.
“It is imperative for DeClout to seize the opportunities in this growing market. In addition, we believe that there is a huge demand from customers in Asia, Europe and North America for reputable asset recovery and independent maintenance service providers with a global reach.
“The acquisition of Procurri allows us to plug into these global markets in the shortest time possible. We are also actively pursuing acquisition or joint venture opportunities in Europe and North Asia,” he added.
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