Blancco Technology Group PLC Acquisition (0704O)

TIDMBLTG

RNS Number : 0704O

Blancco Technology Group PLC

08 June 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

8 June 2022

Blancco Technology Group PLC

Acquisition of WipeDrive

- Acquisition expands reach in the United States with both corporate and US government customers -

Blancco Technology Group PLC (AIM: BLTG, "Blancco", the "Company" or the "Group"), the industry standard in data erasure and mobile lifecycle solutions, is pleased to announce that it has agreed to acquire WipeDrive Inc ("WipeDrive"), formerly known as White Canyon Software Inc, a US-based provider of data erasure software solutions for corporations and public sector organisations (the "Acquisition"). The Board expects the Acquisition to be immediately earnings enhancing upon completion.

The total consideration for WipeDrive is up to US$10 million (GBP8 million), consisting of an initial cash consideration of US$8.5 million to be paid on completion and further contingent consideration of up to US$1.5 million to be paid in cash 12 months following completion subject to certain performance criteria. The total consideration will be financed through the Group's existing cash and debt resources.

Headquartered in Pleasant Grove, Utah, WipeDrive was previously named White Canyon Software Inc and changed its name to WipeDrive in 2021. WipeDrive provides data diagnostic, wiping, transfer and verifying software tools. WipeDrive has a significant customer base of over 500 organisations, spanning IT Asset Disposition ("ITAD"), Asset Management Systems, corporate and government agencies, including Fortune 500 companies, and large US government bodies. WipeDrive also has various proprietary technologies that Blancco will leverage with its current client base.

Matt Jones, Chief Executive Officer of Blancco, commented:

"The acquisition of WipeDrive is highly complementary with our existing services and its US-focused customer base expands our reach with ITAD and Enterprise customers in the US, with both large corporates and US government departments. Blancco is a global leader in the supply of data erasure solutions, and this deal only serves to further enhance our position and reputation in the data compliance, data privacy, cyber security and sustainable data management markets. I am delighted to welcome WipeDrive's employees to Blancco and am enthusiastic about our prospects as a combined entity."

Bill Glynn, Chief Executive Officer of WipeDrive, commented:

"Everyone at WipeDrive is extremely excited to be joining Blancco. Blancco is an acknowledged leader in data erasure and is the ideal company to take our business to the next level. The skills and experience within both our teams are incredibly complementary and we are set to collaborate on what I am sure will be a very successful future together."

Additional information:

WipeDrive is majority owned by Stupar Holdings Corporation and a number of individuals including Tuvia Barak, William Glynn and Donald Griffes. For the financial year ended 31 December 2021 the company recorded revenue of US$3.6 million and profit before tax of US$1.1 million. As at 31 December 2021 the company had net assets of US$0.7 million.

For further information:

 
 Blancco Technology Group plc                via Buchanan 
  Matt Jones, Chief Executive Officer 
  Adam Moloney, Chief Financial Officer 
 
 Peel Hunt (Nominated Advisor & Joint 
  Broker)                                    [phone] 
 Edward Knight / Paul Gillam / James 
  Smith 
 
 Investec Bank plc (Joint Broker)            [phone] 
 Patrick Robb / Sara Hale / Nick Prowting 
 
 Buchanan Communications Limited             [phone] 
 Chris Lane / Stephanie Whitmore / Jack 
  Devoy 
  [e-mail] 
 

This Announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. The person responsible for arranging for the release of this Announcement on behalf of the Company is Lorraine Young, Company Secretary.

About Blancco

Blancco Technology Group plc is a leading global provider of mobile lifecycle solutions and secure data erasure solutions. For more information, please visit www.blancco.com .

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June 08, 2022 02:01 ET (06:01 GMT)