iomart Group to Buy Managed Host Titan Internet for $6.7M
Managed hosting and services company iomart Group cloud computing (www.iomart.com) has acquired the entire issued share capital of the United Kingdom managed server hosting company Titan Internet Limited (www.titaninternet.co.uk).
Iomart according to the announcement on Monday, will pay £ 3.6 million (or $ 5,780,000) in cash upon completion of the agreement, with an additional amount of up to £ 600,000 (about U.S. $ 960 million) payable in April 2011, so that the operation worth 4.2 million (or $ 6.7 million) for the reception of Essex-based management.
“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,” said executive director iomart Angus MacSween. He said his company was able to make the strategic acquisition of Titan because of the balance sheet of the company and an additional deposit of £ 10,000,000 line of credit from Lloyds Banking Group.
“On Titan we have acquired a profitable business of property management with a strong service mark that we expect to continue to grow within our group setting. I am delighted that the management team responsible for the construction of Titan is committed to further developing the business forward in our property. ”
Christie Lee founded in 2001, Titan Internet has since grown to become one of the most respected and technically advanced UK hosting companies. Titan focuses on the delivery of complex, high reliability and managing virtualized hosting solutions, and currently manages over 1,000 servers on behalf of clients ranging from SMEs to large enterprises.
“We are delighted to be part of the iomart Group in such an exciting time in the evolution of hosting services,” said Christie. “We will benefit from economies of scale, product innovation and financial support that the group provides, and we are sure you will be able to accelerate our growth and revenue as a result.”
Christie Lee added: “We believe today’s announcement will bring enormous benefits to our employees and customers alike.”
MacSween said the acquisition is part of ongoing efforts to advance iomart what he calls “the dynamic, but embryonic, the market for cloud computing.” He concludes, “today the acquisition cements announcement of our intention to be a leader in the UK market in this area.”
In June, iomart Group secured £ 10 million (or $ 14.5 million) of credit loan from Lloyds Banking Group (www.lloydsbankinggroup.com) to grow its managed hosting business through a combination of organic growth and acquisitions.
Last year, iomart sold a non-essential business and uses the money to buy the RapidSwitch managed hosting provider for $ 6.5 million in cash.
This strategy seems to be working for iomart, which reported a 55 percent increase in revenue, doubling hosting customers, and £ 3.9 million (equivalent to $ 5.7 million) in cash flow positive the last of his year-end results.