iomart Group plc (AIM:IOM), the managed hosting and cloud computing services company, is pleased to announce 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.”
For further information:
iomart Group plc Tel. 0141 931 6400
Angus MacSween, Chief Executive
Richard Logan, Finance Director
KBC Peel Hunt Tel. 020 7418 8900
Threadneedle Communications Tel. 020 7653 9850
About iomart Group plc
iomart Group is one of the UK’s leading providers of managed hosting and cloud computing services. From a single server through to private cloud networks, iomart specialises in the delivery and management of mission-critical hosting services, enabling customers to reduce the costs, complexity and risks associated with maintaining their own web and online applications.
By physically owning and managing its own network infrastructure, including five state-of-the-art data centres in the UK, iomart offers world-beating levels of service to its customers. The Group offers a unique 100% uptime guarantee with all hosting services being engineered to ensure no single point of failure.
Services offered include: Managed Hosting, Colocation, Complex Hosting solutions, Content Delivery Networks, IP Transit, Data Centre Services and Cloud Computing.
For further information about the Group, please visit www.iomart.com
About Titan Internet
Based in Rochford, Essex, Titan Internet Ltd was founded by Lee Christie in 2001. Nearly a decade later, Titan Internet has grown each year since it was established. Titan has expanded to become one the UK’s leading technical hosting companies. The Company currently manages over 1,000 servers on behalf of a range of clients, from SMEs to large corporates..
For further information about Titan Internet, please visit www.titaninternet.co.uk
Note Financial information for Titan Internet Ltd has been sourced from unaudited, financial due diligence created by external accountants.Subscribe to RSS Feed