Takes ownership of a data center in Hemel Hampstead
UK-based cloud provider Iomart has acquired hosting specialist United Communications for around £11m.
“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,” said Angus MacSween, founder and CEO of Iomart.
Iomart was a managed services and networking company that entered the data center market in 2007. Today, it operates eight facilities across the UK and another eight abroad, in locations including Dubai, Singapore, Los Angeles, Dallas and Boston.
Growth through acquisition
iomart data center in Maidenhead, UK
United Communications, which trades as United Hosting, was founded in 1998 with headquarters in Hemel Hempstead, Hertfordshire. It owns one data center in the UK, rents space in several colocation facilities and has about 6,500 customers, mostly small businesses.
The price of the acquisition could reach £11m, including £7.5m in cash plus another £3.5m depending on the performance of the company over the next 18 months.
Following the acquisition, United Communications founders Matt and Simon Wallis will be staying with the company.
“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” said Matt Wallis.
This is the second acquisition Iomart has made this year. In June it purchased IT services company SystemsUp, which focuses on cloud deployments and has been accredited to work for the UK government.
Similarly to this latest deal, Iomart paid £9m for SystemsUp, with another £3.5m to be released depending on its financial performance.