Cloud computing firm Gigas Hosting (GIGAS) has confirmed that it has entered into a binding agreement to acquire the entire share capital of Portuguese company WINREASON, which operates under the ONI brand name. The deal, which is valued at EUR40 million (USD47.4 million), will be carried out in association with private equity firm GAEA Inversion, while GIGAS will also assume ONI’s existing debt of around EUR3 million.
Following a restructuring process at holding company Cabonitel, GAEA will assume 100% control of ONI in the first instance. This transaction is subject to approval by Portuguese antitrust authorities and will be carried out after carving out certain assets to the Cabonitel Group (which controls sister company Nowo). This part of the deal is projected to close in early 2021. Subsequently, GIGAS will issue around four million new shares, enabling GAEA to become its largest shareholder, with a more than one-third stake.
TeleGeography notes that GAEA Inversion and Grupo MASMOVIL currently co-own Cabonitel, with the latter holding a 49.99% stake. Unconfirmed media reports have suggested that the aforementioned ‘restructuring’ involves the two parties exchanging their respective stakes in Nowo/ONI, although this has not been formally confirmed.