Acquisition of SystemsUp Limited
8 June 2015
iomart Group plc
("iomart" or the "Group" or the "Company")
Acquisition of SystemsUp Limited ("SystemsUp")
iomart, the cloud computing company, is pleased to announce that it has acquired the entire issued share capital of SystemsUp on a cash-free/debt-free basis with normalised working capital.
£9.0m has been paid in cash as an initial consideration and an interim payment of £0.5m in respect of the cash-free, debt-free normalised working capital adjustment has also been paid. A further contingent consideration is due in respect of revenues, on an adjusted basis, for the year to March 2016. It has been estimated that this contingent payment could be in the region of £1.0m to £3.5m.
SystemsUp is a London consultancy specialising in the delivery of IT transformation using Public Cloud. It boasts a range of expertise in the design and delivery of public cloud solutions and is a G-Cloud partner to Google, an authorised Government Partner to Amazon Web Services and a Microsoft Gold Partner.
SystemUp's turnover in the twelve months to 31 March 2015 was £4.0 million with a Profit Before Tax of £1.5 million and net assets of £1.25 million. The initial consideration and any contingent consideration will be financed out of the Group's existing banking facilities and 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.
Angus MacSween, Chief Executive stated:
"The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace. With the acquisition of SystemsUp, iomart has broadened its ability to engage at a strategic level and act as a trusted advisor on cloud strategy to organisations wanting to create the right blend of cloud services, both public and private, to fit their requirements. "
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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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Adam Lloyd |
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Bob Huxford Ed Treadwell Robyn McConnachie |
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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 cloud applications.
By physically owning and managing its own infrastructure, including eight state-of-the-art data centres in the UK, all connected by its own fibre network, 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.
iomart Group operates in its chosen markets through a number of subsidiaries: iomart Hosting, RapidSwitch, Melbourne Server Hosting, Easyspace, and iomartcloud. The Group is listed on the London Stock Exchange's Alternative Investment Market (AIM:IOM). www.iomart.com
This information is provided by RNS
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