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  • Dromana Estate's Acquisition Target CloudCentral Expands Partner Program 0 comments
    Apr 14, 2014 12:29 AM

    Dromana Estate (ASX: DMY) acquisition target CloudCentral has expanded its partner program with new signings that confirm that wholesale Australian‐based cloud computing solutions are in demand.

    Dromana Estate had signed a binding term sheet to acquire CloudCentral on 20 March 2014.

    Having completed due diligence earlier this month, Dromana and CloudCentral are both progressing the remaining conditions precedent with a view to completing the transaction in June this year.

    The new clients include Managed Service providers, Systems Integrators, Telecommunications Providers and Independent Software Vendors.

    New Program entrants including Infinite Networks, OOKI, Simple ID and Standard Computers will benefit from tailored, branded and customised enterprise‐grade cloud platforms which allow them to enter and extend their activity in the cloud space.

    The recent launch of CloudCentral's Partner Program is linked to its continued investment and innovation to exceed current market offerings and innovate its range to remain one step ahead of market demands.

    Acquisition

    The acquisition will position DMY in the fast growth sector, with CloudCentral already generating revenue from over 200 active customer accounts in Australia.

    One of the keys to the deal is the introduction of founder of CloudCentral, Kristoffer Sheather, to become managing director, while former iiNet Director, Andrew Milner, will be a non-executive director.

    There is plenty of blue sky potential for the company, with CloudCentral seeing the market consisting of 15,000 or Australian ICT companies across segments.

    Outlining revenue potential - CloudCentral believes its ideal customer monthly spend ranges from $2,500 to $15,000 per month.

    CloudCentral has four cloud data presences located within Australian Tier-III secure data facilities with two in Canberra, and one each in Sydney and Melbourne.

    Consideration is split between an initial issue of 275 million fully paid Dromana shares and additional shares to be issued upon achievement of performance milestones linked to revenue and EBITDA. The offer is subject to DMY shareholder approval.

    Completion of the acquisition will result in a change of company name from Dromana Estate to CloudCentral Limited.

    Analysis

    The expansion of CloudCentral's Partner Program highlights the growth potential that exists in the cloud computing sector that Dromana Estate is entering with its acquisition of the CloudCentral.

    It also demonstrates the game changing nature of the acquisition, which already offers existing revenue streams, scalability and a foothold in a rapidly expanding sector.

    The introduction of CloudCentral founder Kristoffer Sheather as managing director and former iiNet Director Andrew Milner as a non-executive director are keys to the deal.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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