05/27/2021
q.beyond reviews potential sale of colocation business
- Wholly-owned subsidiary IP Exchange pools housing and hosting expertise
- Sale as one strategic option alongside partnership or stand-alone operation
- Disposal would increase leeway for targeted acquisitions
Cologne, 27 May 2021 – q.beyond AG is, among other strategic options, reviewing the potential sale of its colocation business. Since 1 January 2021, the IT service provider’s housing and hosting business has been based at IP Exchange GmbH. This wholly-owned subsidiary operates three data centres in Munich and Nuremberg and has 51 employees. In 2020, it generated revenues of around € 20 million. The purpose of this spin-off was to extend the strategic options available for this investment-intensive business and in particular to prepare it for partnerships or sale.
Sale only conceivable on very attractive terms
As the decision in favour of any of these strategic options requires familiarity with relevant market circumstances, the Management Board has decided to initiate a structured process to determine the potential for a possible sale. Approval to sell most or all of q.beyond’s wholly-owned subsidiary would require very attractive terms.
q.beyond’s CEO, Jürgen Hermann, explains the reasons for the decision: “The colocation business has contributed solid revenues and earnings for years and there is no pressure to act now. Having said that, colocation offers few synergies with our Cloud, SAP and IoT business and the extra liquidity would further increase our leeway for acquisitions.” Not only that, the opportunities available to IP Exchange could be better leveraged with a suitable new owner or a new partner at q.beyond’s side.
Three focuses for acquisitions
Just like acquisitions, divestments also form part of the “2020plus” growth strategy. In 2019, q.beyond sold its traditional telecommunications business while in 2020 it took over the software engineering specialist Incloud in its entirety. Acquisitions of further technology companies are planned for 2021 and the years ahead. Here, the company has set three key focuses: First, by making acquisitions it aims to strengthen or broaden its sector focus. Second, the acquisitions should assist targeted extension in its product portfolio, for example in the field of enterprise software. Third, acquisitions should supplement existing technological expertise to enhance the company’s position in forward-looking markets such as cloud services, data analytics, embedded software, IoT and artificial intelligence.
Accelerated growth also driven by acquisitions
With an equity ratio of 74%, net liquidity of around € 40 million and no debt, q.beyond is already strongly positioned for potential acquisitions. The possible sale of most or all of IP Exchange GmbH would further significantly increase the company’s financial leeway and create further options. Jürgen Hermann states the core objective: “We will accelerate our growth in the years ahead.”
About q.beyond AG
q.beyond AG is the key to successful digitalisation. We help our customers find the best digital solutions for their business and then put them into practice. Our strong team of 900 people accompanies SME customers securely and reliably throughout their digital journey. We are experts in Cloud, SAP and IoT.
q.beyond AG resulted from the rebranding of QSC AG in September 2020. With nationwide locations and its own certified data centres, it is one of Germany’s leading IT service providers.
Contact
q.beyond AG
Jan Erlinghagen
Corporate Communications
Mathias-Brüggen-Str. 55
50829 Cologne
T +49 221 669-8119
presse@qbeyond.de
