Business
Acquisition of RapidSwitch Li
Acquisition of RapidSwitch Li.
About this update from Iomart Group Plc
[{"type":"text","content":"\n RNS Number : 0688S Iomart Group PLC 12 May 2009 \nIOMART GROUP PLC\n('iomart' or the 'Group')\n\nAcquisition of RapidSwitch Limited ('RapidSwitch')\n\niomart Group plc (AIM:IOM), the managed hosting services company, is pleased to announce the acquisition of the entire issued share capital of RapidSwitch Limited for a total cash consideration of £5.25 million.\n \nAs a successful and profitable managed hosting company, RapidSwitch is an ideal fit for iomart. The acquisition is in line with iomart's strategy of becoming the UK's foremost hosting company, focused on the delivery of managed hosting environments and solutions, be they virtual, dedicated, cloud or SaaS.\n\nRapidSwitch is focused on delivering highly reliable managed hosted solutions for its clients. RapidSwitch currently manages over 4,000 servers on behalf of 1600 clients ranging from SMEs through to large corporates. It has achieved strong organic growth, via a high rate of repeat business and referrals, through its well deserved reputation for excellent customer service.\n\nRapidSwitch is delivering substantial revenue growth, having been recognised as the 10th fastest growing technology company in the UK by Deloitte. Revenues of £1.48 million for the year to March 2007 grew to £2.6 million for the year to March 2008. A similar level of revenue growth has been achieved in the year to March 2009. \n\nThe purchase of RapidSwitch provides iomart with a fifth data centre to add to its existing portfolio of four operational datacentres. RapidSwitch's data centre, which is located in Maidenhead, Berkshire, is newly commissioned and operational. When all phases of the build-out are completed it will give iomart the capacity to accommodate a further 600 racks, as well as mitigating substantial existing costs currently carried by RapidSwitch. \n\niomart expects the acquisition to be immediately earnings enhancing. The acquisition of RapidSwitch is in line with iomart's strategic objective to expand its presence and capability in hosting and the Board of iomart believe that the acquisition of RapidSwitch offers many benefits and opportunities including: \n• The acquisition of a well established, profitable business with strong growth prospects;\n• An immediate enhancement to earnings per share;\n• An increased presence in hosting;\n• A...