Business
Acquisition of Titan
Acquisition of Titan.
About this update from Iomart Group Plc
[{"type":"text","content":"\n RNS Number : 3184V Iomart Group PLC 01 November 2010 \n \n\n1st November 2010\niomart Group plc\n(\"iomart\" or the \"Group\")\nAcquisition of Titan\n \niomart Group plc (AIM:IOM), the managed hosting and cloud computing services company, is pleased to announce the acquisition of the entire issued share capital of Titan Internet Limited (\"Titan\") for a total cash consideration of up to £4.2 million. \n \nThe acquisition is in line with iomart's strategy of becoming the UK's foremost hosting company, focused on the delivery of high end managed hosting environments and solutions. \n \nTitan delivers managed hosted solutions and currently manages over 1,000 servers on behalf of an impressive client base ranging from SMEs to large corporate clients. As at 31 August 2009, the net assets of Titan were £765k with revenues of £3,433K, EBITDA of £648k and pre-tax profits of £342k. Titan currently has net cash of approximately £500k.\n \nIn addition to the client base, the purchase of Titan also provides iomart with an experienced team in the managed hosting arena and potentially significant cost savings once Titan has been fully integrated into the Group. In consequence, iomart expects the acquisition to be immediately earnings enhancing before the one off costs of integration synergies. \n \nOf the total consideration of £4.2m, £3.6m has been paid on completion and a further amount of up to £0.6m is payable no earlier than 1 April 2011, subject to the certain performance criteria being met. \n \nAngus MacSween, CEO of iomart Group plc, stated: \n \n\"Our strategy has always been to grow both organically and through acquisition. Having recently announced that our organic growth is ahead of market expectations, we believe the acquisition of Titan will accelerate that growth through the incorporation of an excellent managed hosting operation with an impressive client list.\"\n \nFor further information:\n \n\n\n\n\niomart Group plc\n\n\nTel. 0141 931 6400\n\n\n\n\nAngus MacSween, Chief Executive\n\n\n \n\n\n\n\nRichard Logan, Finance Director\n\n\n \n\n\n\n\n \n\n\n \n\n\n\n\nKBC Peel Hunt\n\n\nTel. 020 7418 8900\n\n\n\n\nRichard Kauffer\n\n\n \n\n\n\n\nDaniel Harris\n\n\n \n\n\n\n\n \n\n\n \n\n\n\n\nThreadneedle Communications\n\n\nTel. 020 76...