Scottish buy for iomart

Cloud computing business iomart has made its second acquisition of the year, buying Scottish infrastructure service provider EQSN for up to £2.475 million.

The latest transaction from iomart follows the AIM-listed company’s purchase of Switch Media in April.

From its Glasgow base, EQSN provides hosting services for clients in the banking and finance, manufacturing and internet production sectors, as well as local and central governments.

Angus MacSween, chief executive at iomart, says that EQSN has an ‘impressive’ customer base, and presents a strategic and cultural fit for the London-headquartered business.

He adds: ‘The purchase of ESQN fits perfectly with our stated intention of looking for acquisitions that add depth and value. We are ambitious to keep growing organically and by acquisitions, and will continue to look for similar opportunities moving forward.’

Under the terms of the purchase, an initial consideration of £2.25 million is due on completion, with an additional £225,000 dependent on the ‘successful’ integration of the operations of EQSN into iomart.

Earlier in the year iomart paid £1.2 million to acquire Liverpool-based digital agency Switch Media, which was purchased to compliment its product range, namely its Easyspace offering.

Alan Lorimer, chief executive at ESQN, comments: ‘Becoming part of iomart is a natural step for us. It means that we can offer our customers even more value through an extended service portfolio and facilities because of iomart’s fully owned, managed and secure datacentre network.’

In June, iomart placed 22nd in the industry ranking table Talkin’ Cloud 50 2011, which is a survey of global service providers working in cloud computing.

For the year to date 31 March 2011, iomart reported revenue growth of 38 per cent to £25.3 million and saw profit before tax rise by 618 per cent to £2.8 million.

Todd Cardy

Adelbert Swaniawski

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital. Connect with...

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