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iomart sells Madasafish ISP Business

10th May 2001 · Investor News

iomart sells Madasafish ISP Business

iomart Group plc ("iomart"), the Glasgow based internet services company, announces that it has completed the sale of its Madasafish internet service provider business for a cash consideration of £3.0 million.

The business sold incorporates the dial up internet access services provided with either "0845" or "unmetered" products and marketed under the brand names Madasafish and Jings. These services generated revenues of £2 million during the year ended 31 December 2000 and gross profits after marketing costs (but before allocation of any staff, network, support or overhead expenses) of £0.4 million. The value of the net assets sold is minimal as the transaction effectively represents a payment for goodwill created by iomart.

The purchaser paid the entire consideration of £3.0 million cash on completion. Under transitional arrangements, iomart will continue to operate the service for up to four months on normal commercial terms.

Angus MacSween, Chief Executive of iomart, commented: –

"Over the past nine months we have been developing and implementing a strategy to move iomart into business services and away from consumer related activities. Our intention is for iomart to become a world class ASP messaging business, building on the success of our recently launched Thinkmail product for outsourced e-mail management. The sale of Madasafish will make us more focused and provide additional funding for the implementation of our revised strategy."

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