BMIT Technologies plc - Acquisition of Property

On 23 May 2019, BMIT Technologies plc announced that its wholly-owned subsidiary BM IT Limited entered into a promise of sale agreement for the acquisition of the building that currently houses BMIT’s data centre in Handaq, Qormi. The data centre has a capacity of approximately 300 racks and, upon completion of the purchase agreement, the lease agreement between BM IT and the landlord will come to an end.

The consideration of the deal amounts to €4 million, of which €0.4 million have already been paid as part of the consideration on the signing of the promise of sale agreement. The balance, amounting to €3.6 million, is payable in full and final settlement of the consideration upon execution of the deed of sale. Amongst other conditions, the deal is subject to the approval by shareholders of BMIT in general meeting, the attainment by BM IT of the relevant permit in terms of the Immovable Property (Acquisition by Non-Residents) Act and the property being determined as free from any material structural defects.

BMIT explained that the promise of sale agreement is valid and effective up to the 23 January 2020. Furthermore, the acquisition will be instrumental to BMIT to carry on a significant part of its operations from its own property as this will minimise, and in some cases, avoid risks associated with a migration to another facility including financial expense, operational disruption and risk of loss of business since customers allocated to the date centre operating from the property would not need to be relocated. The acquisition will also mean that BMIT will no longer have to honour the remaining term of the current lease resulting it in incurring less expenditure on rental of premises.