(Ping! Zine) – Managed hosting and cloud computing services company, iomart recently announced the acquisition of the entire issued share capital of Titan Internet Limited (“Titan”) for a total cash consideration of up to £4.2 million.
The acquisition is in line with iomart’s strategy of becoming the UK’s foremost hosting company, focused on the delivery of high end managed hosting environments and solutions.
Titan delivers managed hosted solutions and currently manages over 1,000 servers on behalf of an impressive client base ranging from SMEs to large corporate clients. As at 31 August 2009, the net assets of Titan were £765k with revenues of £3,433K, EBITDA of £648k and pre-tax profits of £342k. Titan currently has net cash of approximately £500k.
In addition to the client base, the purchase of Titan also provides iomart with an experienced team in the managed hosting arena and potentially significant cost savings once Titan has been fully integrated into the Group. In consequence, iomart expects the acquisition to be immediately earnings enhancing before the one off costs of integration synergies.
Of the total consideration of £4.2m, £3.6m has been paid on completion and a further amount of up to £0.6m is payable no earlier than 1 April 2011, subject to the certain performance criteria being met.
Angus MacSween, CEO of iomart Group plc, stated:
“Our strategy has always been to grow both organically and through acquisition. Having recently announced that our organic growth is ahead of market expectations, we believe the acquisition of Titan will accelerate that growth through the incorporation of an excellent managed hosting operation with an impressive client list.”