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United Hosting Sells Out For $16M Plus

Tue, 1st December 2015, 17:25

Cloud hoster iomart has made its second acquisition of 2015, announcing that it has acquired the managed hosting company United Hosting. The details of the deal which were made public gives iomart the entire issued share capital for a cash price up to £11.0 million (okay that’s $16 Million plus USD) with £7.5 million of that upfront. A further £3.5 million is contingent on United Hosting achieving agreed EBIT performance targets in years to April 2016 and 2017.

United Hosting was founded in 1998 and provides managed, dedicated and shared hosting services and domains to approximately 6,500 customers, the majority of which are small businesses. The company is based in Hemel Hempstead in Hertfordshire, where its main data center facility is located. It also leases data center space in London and in Dallas, Texas and has a support function based in India.

Angus MacSween, CEO of iomart, said:

In line with previous acquisitions made by iomart, United Hosting is a profitable, growing business whose services reflect those we offer. As such, the business fits well within our acquisition criteria and will be a valuable addition to the Group.

Matt Wallis, Director of United Hosting, said:

This is a huge opportunity to develop and grow the business. We are now backed by one of the leading providers of managed hosting and cloud services in the UK as well as a company with all the regulatory and financial strength that comes with being listed on the London Stock Exchange.

Having met with Angus and his executive team we believe they can take us to the next level of success.

The co-founders of United Hosting, brothers Matt and Simon Wallis, will remain with the business. This is the second acquisition of the year for iomart. In June, the Group acquired SystemsUp, an IT consultancy specializing in the design and delivery of Public Cloud solutions.

Iomart Hosting growth has been fueled by a number of webhosting company acquisitions over the years including ServerloveRapidSwitchEasyspaceTitan InternetMelbourne Server Hosting and RedStation.

Iomart rejected a take over bid by Host Europe last year.

About iomart

Award winning cloud company iomart Group PLC (AIM: IOM) enables businesses and organizations to operate their online data and IT environments safely and securely. Headquartered in Glasgow, Scotland, iomart partners with leading vendors such as VMware, Amazon, EMC, Microsoft, Asigra, Arbor and Dell to offer customers a centrally managed, controlled and completely agnostic set of hybrid, private and public cloud platforms. By owning a global network and datacenter infrastructure, iomart can support any customer who wishes to move seamlessly between any and all of these platforms with a consultative level of knowledge and expertise, delivering cloud services to meet exact business needs.

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