Novo Tellus buys stake in data center equipment supplier

Novo Tellus will acquire 36 million shares held by the DeClout Group, Procurri’s largest shareholder, for S$0.33 per share, according to a filing. The purchase will give Novo Tellus a 12.7% stake in the company.

Procurri was founded in 2009 as Asvida Asia to provide IT equipment and maintenance services for companies in Asia, and had grown its support coverage to 16 countries in the region by 2013. That year, the acquisition of US-based Procurri gave it global reach, and the company has since continued to expand its market presence with 14 offices worldwide providing coverage in over 100 countries.

According to Procurri’s most recent annual report, the company recorded revenue of S$182 million for the year ended December 2017, up from S$136 million the year before. IT equipment and distribution accounts for the majority of its business, contributing S$140 million in the most recent year; the rest of the company’s revenue came from maintenance and support services.

Procurri has seen its most significant growth in recent years from Europe, the Middle East, and Africa. Revenue from this combined region rose from S$37 million in 2016 to S$66 million in 2017, outpacing the Americas, which grew from S$60 million to S$82 million. Over the same period, the company went from a net profit of S$5.1 million to a S$2.7 million net loss.

DeClout is a Singapore-listed holding company focused on developing IT and cloud computing technology providers. It acquired a majority stake in Procurri in 2013 with the intention of driving the company’s global growth and saw its holding drop to 47% in Procurri’s 2016 IPO. Its holding currently stands at 16.7% following the sale to Novo Tellus and a prior share sale in January.

Novo Tellus is currently targeting $150 million for its second fund. The firm’s investments center on technology and industrial plays in Singapore, Malaysia, and Thailand, seeking opportunities to help experienced management teams with its cross-border investment and operational expertise.

Previous investments include MFS Technology, a Singapore-based circuit board maker that the firm acquired for $95 million alongside Navis Capital Partners in 2014. Both GPs have since exited their stakes in the company.

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• Topics
• Southeast Asia
• Technology
• Support services
• PIPEs
• Singapore
• professional services