DGAP-News

q.beyond reviews potential sale of colocation business

DGAP-News: q.beyond AG / Key word(s): Strategic Company Decision q.beyond reviews potential sale of colocation business 27.05.2021 / 07:30 The issuer is solely responsible for the content of this announcement. 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.