iomart Acquires Titan Internet for $6.7 Million Cash
iomart Group plc cloud computing and managed hosting services company, has today acquired the entire issued share capital of Titan Internet Limited, the UK’s leading managed server hosting company, for € 3.6 million ($ 5.7M ) in cash at the end with an additional amount of up to £ 0.6m ($ 0.96m) payable in April 2011.
Titan Internet, founded eleven years ago, has become one of the most respected and technically advanced UK managed hosting companies, especially in the areas of virtualization and network management. Titan In recent years the Internet has reached a deserved reputation for customer delivery and excellent service.
Titan focuses on the delivery of complex, high reliability and managing virtualized hosting solutions and has built an impressive client base, which currently manages over 1,000 servers on behalf of clients ranging from SMEs to large enterprises.
At August 31, 2009, Titan’s net assets were £ 765k with an income of £ 3.4 million ($ 5.4M), EBITDA of £ 648k ($ 1M) and profit before taxation of £ 342K ( $ 548k). Titan currently has net cash of approximately £ 500 thousand ($ 802K).
Angus MacSween, CEO iomart Group plc, said: “We announced in June that the group aims to become the UK leader in the market relatively new cloud computing through a combination of organic growth and acquisitions. Our enviable position of having a strong balance sheet and an additional £ 10 million ($ 16M) line of credit from Lloyds Banking Group allows us to make strategic and complementary acquisitions, such as Internet Titan when they occur. ”
Angus MacSween added: “The acquisition of Titan Internet gives us the additional highly qualified technical expertise particularly in the areas of virtualization and network management of both the basic attributes required to offer the full range of flavors of cloud computing market. ”
“On Titan we have acquired a profitable business with a strong service mark that we expect to continue to grow within our group setting and am pleased that the management team responsible for growing the business is committed to continue to pursue our property” .
Christie Lee Titan Internet MD said: “We believe today’s announcement will bring enormous benefits to our employees and customers alike. We are delighted to be part of the iomart Group in such an exciting time in the evolution of hosting services. We will benefit from economies of scale, product innovation and financial support that the group gives us, and we are sure you will be able to accelerate our growth and revenue as a result. ”
Angus MacSween added: “Having recently announced that our organic growth is ahead of market expectations, we believe that the acquisition of Titan accelerate that growth through the addition of an excellent managed hosting operation with an impressive client list .
“The opportunities to add value through infrastructure, technology and marketing synergies are important. Accordingly, iomart expects the acquisition to be immediately earnings enhancing before integration costs synergies.”
Finally Angus MacSween added: “The Group continues to make excellent progress in the energy, but the market tag embryos computing. Now we are established, gaining market recognition and a reputation for service excellence, and I think now we are well positioned to rapidly grow our market share. cements acquisition announcement today of our intention to be a leader in the UK market in this area. ”
“We will continue discussing a number of additional acquisition opportunities in the coming months enabling us to add entries, benefits, capabilities and savings for the Group.”
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