Questions & Answers Content Who is CloudBearing?... 2 Who are the main customers of CloudBearing?... 2 Who is COMPAREX?... 2 Who are the main customers of COMPAREX?... 2 Initial considerations... 3 What is the expansion strategy of COMPAREX? How many acquisitions has COMPAREX completed in recent years?... 3 Why did COMPAREX decide in favor of CloudBearing?... 3 Had CloudBearing previously considered an international expansion?... 3 CloudBearing has provided services to clients in 5 countries including Canada, Mexico, China, the United Kingdom, and the United States.... 3 Why did CloudBearing decide to sell?... 3 What is the amount of the deal?... 4 What will the joint portfolio comprise? What are the USPs?... 4 Who will be managing the company? What will happen to the existing management team?... 4 What will happen to the staff of CloudBearing?... 4 Will contracts with customers be affected by the acquisition?... 4 Q&A COMPAREX acquires CloudBearing / October 2014 1
The companies Who is CloudBearing? CloudBearing, a national cloud provider, has helped hundreds of organizations move their applications and infrastructure to the Microsoft Cloud to lower cost and risk and to increase security and productivity. The firm offers white glove Office 365 migrations, Azure services, cloud identity consulting, 24 x 7 managed support services and training to ensure successful adoption. CloudBearing s customer-first, Solutions for the Modern Workforce brand evolved from the practices of Fortune 100 enterprise software firms and leading global consultancies. The company, founded in 2011, operates primarily from its headquarters in Raleigh, NC and also has employees across the country. Who are the main customers of CloudBearing? CloudBearing has customers around the country, providing services to small business and midmarket commercial accounts, education institutions, and not-for-profit organizations. Who is COMPAREX? COMPAREX is a global IT provider specializing in license management, sourcing, technical product consulting and cloud-based professional services. With a track record spanning thirty years, Comparex serves the public-sector, SMB and large international corporations. The Comparex Group employs more than 2,000 people across Europe, Asia, Africa and the Americas. In fiscal year 2013/14 the Comparex generated revenue of 1.512 billion / $2 billion. Who are the main customers of COMPAREX? SMEs, public-sector, industrial enterprises and global corporations from various segments. Q&A COMPAREX acquires CloudBearing / October 2014 2
About the acquisition Initial considerations What is the expansion strategy of COMPAREX? How many acquisitions has COMPAREX completed in recent years? COMPAREX pursues an international growth strategy, through both green-field, organic entries as well as acquisitions. Since the year 2000, COMPAREX has acquired twelve companies in Europe, Asia and South America and overall entered twelve countries organically. In 2014, COMPAREX acquired the spin-off of the Brazilian system integrator 2S and the Mexican IT solutions company PERIFEL. Previous activities included among others the acquisition of Agile Software and InfraControl in the Netherlands in 2013. In 2012, COMPAREX acquired DATALOG Software AG to add to their existing German organization and founded subsidiaries in Indonesia and Bulgaria. In 2011, it entered the Indian market and acquired Iris Unified Technology Pvt. Ltd. The continuous organic and inorganic growth is part of COMPAREX s current and future international growth strategy. The full overview on the mergers and acquisitions history of COMPAREX can be found on COMPAREX.com Why did COMPAREX decide in favor of CloudBearing? CloudBearing is an award winning provider of services for Microsoft cloud products. By acquiring CloudBearing COMPAREX intends to intensify its cloud business and to further strengthen its position on the US market. Had CloudBearing previously considered an international expansion? CloudBearing has provided services to clients in 5 countries including Canada, Mexico, China, the United Kingdom, and the United States. Why did CloudBearing decide to sell? CloudBearing s leadership saw significant advantage in the U.S. market by combining the capabilities of an LSP and a leading cloud integration partner to provide an end-to-end solution for licensing, services, and support. This unique combination provides an opportunity for the combined entity to establish themselves as the number one Cloud LSP in the United States. Q&A COMPAREX acquires CloudBearing / October 2014 3
The effects In what form do CloudBearing and COMPAREX operate together? CloudBearing will provide professional and managed services to COMPAREX USA customers for Microsoft cloud solutions. CloudBearing will also assist COMPAREX to develop cloud portfolios around the world. What is the amount of the deal? The parties have agreed to keep the details of the transaction confidential. For this reason, the terms of the deal were not disclosed. What will the joint portfolio comprise? What are the USPs? The joint operation will create a complete, end-to-end solution for U.S. based customers to provide cloud pre sales consulting, cloud licensing, cloud migration services and managed IT support services for companies, non-profits and universities based on acquisition of one of the most experienced integrators in the United States with over 370 organizations and 1.7M users migrated to the Microsoft Cloud. COMPAREX USA is the ONLY 100% focused Microsoft Cloud solutions provider with global reach. Who will be managing the company? What will happen to the existing management team? Nicholas Vossburg, CEO of CloudBearing, will become Director of Cloud Services for COMPAREX USA. Other existing CloudBearing executives will join the COMPAREX USA leadership team to continue to provide management of their ongoing operations. COMPAREX s strategy is acquiring leadership and expertise to grow business, thus each and every CloudBearing employee is critical to the future direction of the Company. What will happen to the staff of CloudBearing? The CloudBearing staff with its expertise in cloud business is very important for COMPAREX. Therefore, all CloudBearing staff will be retained in the new combined entity in the United States. Will contracts with customers be affected by the acquisition? Existing customers of CloudBearing will be given the opportunity to purchase licensing and software asset management services from COMPAREX, as well as continue their services with CloudBearing. Q&A COMPAREX acquires CloudBearing / October 2014 4
Media contact: Maria Rohr Corporate Communications Manager COMPAREX AG phone: +49 341 25 68 171 fax: +49 341 25 68 999 email: maria.rohr@comparex.com Q&A COMPAREX acquires CloudBearing / October 2014 5