iomart, the cloud computing company, is pleased to announce that it has acquired the entire issued share capital of SystemsUp on a cash-free/debt-free basis with normalised working capital.
£9.0m has been paid in cash as an initial consideration and an interim payment of £0.5m in respect of the cash-free, debt-free normalised working capital adjustment has also been paid. A further contingent consideration is due in respect of revenues, on an adjusted basis, for the year to March 2016. It has been estimated that this contingent payment could be in the region of £1.0m to £3.5m.
SystemsUp is a London consultancy specialising in the delivery of IT transformation using Public Cloud. It boasts a range of expertise in the design and delivery of public cloud solutions and is a G-Cloud partner to Google, an authorised Government Partner to Amazon Web Services and a Microsoft Gold Partner.
SystemUp’s turnover in the twelve months to 31 March 2015 was £4.0 million with a Profit Before Tax of £1.5 million and net assets of £1.25 million. The initial consideration and any contingent consideration will be financed out of the Group’s existing banking facilities and the acquisition is expected to be immediately earnings enhancing before acquisition costs and normal acquisition adjustments including any fair value adjustments and the amortisation of intangible assets.
Angus MacSween, Chief Executive stated:
“The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace. With the acquisition of SystemsUp, iomart has broadened its ability to engage at a strategic level and act as a trusted advisor on cloud strategy to organisations wanting to create the right blend of cloud services, both public and private, to fit their requirements. “