Cloud company iomart (AIM: IOM) has made its second acquisition of 2015, acquiring the managed hosting company United Communications Limited which trades as “United Hosting.”
iomart has acquired the entire issued share capital (on a cash-free/debt-free normalised working capital basis) for a total consideration of up to £11.0 million, with £7.5 million settled in cash on completion. A further £3.5 million is contingent on United Hosting achieving agreed EBIT performance targets in years to April 2016 and 2017.
United Hosting was founded in 1998 and provides managed, dedicated and shared hosting services and domains to approximately 6,500 customers, the majority of which are small businesses. The company is based in Hemel Hempstead in Hertfordshire, where its main data centre facility is located. It also leases data centre space in London and in Dallas, Texas and has a support function based in India.
Angus MacSween, CEO of iomart, said: “In line with previous acquisitions made by iomart, United Hosting is a profitable, growing business whose services reflect those we offer. As such, the business fits well within our acquisition criteria and will be a valuable addition to the Group.”
The co-founders of United Hosting, brothers Matt and Simon Wallis, will remain with the business.
Matt Wallis, Director of United Hosting, said: “This is a huge opportunity to develop and grow the business. We are now backed by one of the leading providers of managed hosting and cloud services in the UK as well as a company with all the regulatory and financial strength that comes with being listed on the London Stock Exchange. Having met with Angus and his executive team we believe they can take us to the next level of success.”
This is the second acquisition of the year for iomart. In June, the Group acquired SystemsUp, an IT consultancy specialising in the design and delivery of Public Cloud solutions.
For the full statement made to the London Stock Exchange click here
iomart will announce its interim results on Wednesday 2nd December 2015.