Acquisition of Melbourne Server Hosting
iomart Group plc
("iomart" or the "Group" or the "Company")
Acquisition of Melbourne Server Hosting Ltd ("Melbourne")
iomart Group plc, the cloud computing company, is pleased to announce the acquisition of the entire issued share capital of Melbourne for a maximum cash consideration of up to £7.0 million.
Melbourne is a Manchester based provider of managed hosting solutions to over 600 customers. Melbourne operates its own datacentres in Manchester, providing iomart with additional datacentre capacity. As well as the addition of spare capacity, this fills a geographical gap in the iomart datacentre estate and provides a sales platform to address the North of England market.
Melbourne's turnover in the year to 31 December 2011 was £2.9 million with an EBITDA of £0.63 million and net assets of £0.26 million. At completion, Melbourne is expected to have a net debt position of £0.17 million. Melbourne has delivered strong revenue growth, with December 2011 turnover around £0.9 million higher than December 2010 before adjusting for associated company trading. 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.
Of the total consideration of £7.0 million, £6.5 million has been paid at completion, with two deferred amounts of £0.25 million due; one contingent on the successful integration of the operations of Melbourne into the Group; and the other contingent on the amount of net debt and working capital of Melbourne at completion. The acquisition will be financed jointly from the Company's cash resources and through a drawdown of £5.0 million from the Company's bank loan facility.
In addition the Company has recently acquired a small web hosting business called Skymarket Limited, for a maximum consideration of £1.24 million on a debt free, cash free and fully funded working capital basis. In the year to December 2011 Skymarket Limited had revenues of £1.0 million.
Angus MacSween, Chief Executive stated:
"We are delighted to complement our continued organic growth by acquiring profit enhancing businesses. iomart has been looking for some time to acquire a quality managed hosting operation in the North of England to extend our UK coverage and Melbourne fits the bill perfectly, adding a strong customer list and additional datacentre capacity. We are also pleased to have welcomed Skymarket into the Group last month."
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iomart Group plc |
Tel: 0141 931 6400 |
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Angus MacSween, Chief Executive |
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Richard Logan, Finance Director |
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Peel Hunt LLP (Nominated Adviser and Broker) |
Tel: 020 7418 8900 |
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Richard Kauffer |
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Daniel Harris |
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Newgate Threadneedle |
Tel: 020 7653 9850 |
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Caroline Evans-Jones |
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Hilary Millar |
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About iomart Group plc
iomart Group is one of the UK's leading providers of 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 (Infrastructure as a Service).
iomart Group operates in its chosen markets through a number of subsidiaries: iomart Hosting, RapidSwitch, Easyspace, EQSN and Westcoastcloud. The group has been listed on the London Stock Exchange's Alternative Investment Market (AIM) since April 2000.
For more information about iomart Group plc visit www.iomart.com
This information is provided by RNS
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