Glasgow-based cloud computing firm iomart announced it has acquired ServerSpace, a rival cloud service provider, for £4.25m. The move comes as the company reported a revenue increase of almost 28 per cent in its consolidated half yearly results for the period ending 30 September.
ServerSpace, founded in 2006, provides VMware and Citrix-based cloud and managed hosting as well as colocation and networking services. The company was acquired by iomart earlier this month for a maximum cash consideration of £4.25m.
“Having the weight of an impressive parent company like iomart behind us will help us win bigger deals and I’m excited at the opportunities that lie ahead,” said Tim Pat Dufficy, managing director and founder of ServerSpace.
The move comes on the heels of a big expansion effort at iomart, which recently set up datacentre and infrastructure operations on the east and west coasts of the US. The company is among a handful of smaller cloud service providers consolidating around the UK mid-market; others include UKFast and Claranet.
The company reported revenue growth of 28 per cent to £31.5m for the half ending September 30 this year, an increase over the $24.6m in revenue reported for the first half of this year.
“We have demonstrated a further strong performance as we continue to benefit from last year’s acquisitions of Redstation and Backup Technology, and we have made a good start to the second half of the year,” said iomart chief executive officer Angus MacSween.
“The market opportunity remains large and long term and, in a fast moving and ever evolving industry we have the skills and experience to continue to perform well. Our focus going forward is on continuing to deepen our relationships with the large Tier 1 vendors and their growing trust in our abilities gives me confidence for iomart’ s prospects in the years ahead,” MacSween said.