Business
Acquisition of Redstation Limited
Acquisition of Redstation Limited.
About this update from Iomart Group Plc
[{"type":"text","content":"\n \nRNS Number : 2703N Iomart Group PLC 05 September 2013 \n\n5 September 2013\niomart Group plc\n(\"iomart\" or the \"Group\" or the \"Company\")\n \nAcquisition of Redstation Limited (\"Redstation\")\n \niomart, the cloud computing company, is pleased to announce that it has acquired the entire issued share capital of Redstation on a cash-free/debt-free basis with normalised working capital.\n \n£6.6m has been paid as an initial consideration, of which £5.1m has been paid in cash and £1.5m satisfied by the issue of 515,464 new ordinary shares. A further contingent consideration of up to £1.5m is potentially payable in cash subject to Redstation achieving certain profit targets in the period to end March 2014.\n \nRedstation is a Hampshire based provider of dedicated servers and bandwidth. It operates a full sales, support and technical operation in Gosport with two freehold datacentres providing services to around 3,000 customers. Through the acquisition of Redstation, and operating alongside its existing Rapidswitch brand, this will significantly enhance iomart's position as one of the leading UK-based providers of dedicated servers housing approximately 20,000 physical servers on behalf of customers.\n \nRedstation's turnover in the twelve months to 31 June 2013 was £5.2 million with an EBITDA1 of £2.4 million and net assets of £1.8 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.\n \nApplication has been made to the London Stock Exchange for the new ordinary shares, which will rank pari passu with the existing shares in issue, to be admitted to trading on AIM, and admission is expected to become effective on 10 September 2013. The Company's total issued share capital after the admission of the new ordinary shares will be 106,580,482 ordinary shares. There are 140,773 ordinary shares in the iomart Group plc Employee Benefit Trust and the Company holds 1,023,453 of its ordinary shares in treasury. Therefore the total number of ordinary shares with voting rights in the Company is 105,416,256. This f...