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.
About Climb Global
Solutions
Climb Global Solutions, Inc. (NASDAQ:CLMB) is a
value-added global IT distribution and solutions company
specializing in emerging and innovative technologies. Climb
operates across the US, Canada and Europe through multiple business
units, including Climb Channel Solutions, Grey Matter and Cloud
Know How. The Company provides IT distribution and solutions for
companies in the Security, Data Management, Connectivity, Storage
& HCI, Virtualization & Cloud, and Software & ALM
industries.
Additional information can be found by
visiting www.climbglobalsolutions.com.
About DataSolutions
DataSolutions is a leading value-added
distributor of transformational IT solutions in Ireland and the UK
since 1991. Its vision is to identify, evaluate and source
technologies which help resellers and their customers to build,
secure, manage and access their hybrid and multi-cloud
infrastructure.
DataSolutions is passionate about delivering the
best levels of service in the industry to enable partners to grow,
sell more and future proof their business. It is widely recognized
for its excellence in sales and marketing support and is a trusted
expert for the technologies they provide. DataSolutions' vendor
portfolio includes innovators within the rapidly expanding areas of
IT Security, Networking, Digital Workspace and Hybrid
Multi-Cloud.
Forward-Looking Statements
The statements in this release, other than
statements of historical fact, are “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and are intended to come within the
safe harbor protection provided by those sections. These
forward-looking statements are subject to certain risks and
uncertainties. In this press release, many of the forward-looking
statements may be identified by words such as ”look forward,”
“believes,” “expects,” “intends,” “anticipates,” “plans,”
“estimates,” “projects,” “forecasts,” “should,” “could,” “would,”
“will,” “confident,” “may,” “can,” “potential,” “possible,”
“proposed,” “in process,” “under construction,” “in development,”
“opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,”
“aim,” “commit,” or similar expressions, or when we discuss our
priorities, strategy, goals, vision, mission, opportunities,
projections, intentions or expectations. Factors, among others,
that could cause actual results and events to differ materially
from those described in any forward-looking statements include,
without limitation, our ability to recognize the anticipated
benefits of the acquisition of DataSolutions, the continued
acceptance of the Company’s distribution channel by vendors and
customers, the timely availability and acceptance of new products,
product mix, market conditions, competitive pricing pressures, the
successful integration of acquisitions, contribution of key vendor
relationships and support programs, inflation, as well as factors
that affect the software industry in general. The forward-looking
statements contained herein are also subject generally to other
risks and uncertainties that are described in the section entitled
“Risk Factors” contained in Item 1A. of our Annual Report on Form
10-K for the fiscal year ended December 31, 2022, and from time to
time in the Company’s filings with the Securities and Exchange
Commission.
Company Contact
Drew ClarkChief Financial Officer(732)
389-0932Drew@ClimbGS.com
Investor Relations Contact
Sean Mansouri, CFAElevate IR(720)
330-2829CLMB@elevate-ir.com
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