8th Jun 2015 06:56
LONDON (Alliance News) - Cloud computing company Iomart Group PLC said Monday it has acquired London IT consultancy SystemsUp Ltd for an initial cash consideration of GBP9.0 million.
The acquisition is expected to add to earnings immediately, Iomart said, before acquisitions costs and normal adjustments including any fair value adjustments and amortisation of intangible assets.
Iomart has also made an interim payment of GBP500,000 in relation to a working capital adjustment. A further contingent payment will be paid based on revenues on an adjusted basis for the year to end-March 2016. Iomart estimates this contingent payment could be in the region of between GBP1.0 million to GBP3.5 million.
Iomart will finance the acquisition from its exiting banking facilities.
SystemsUp posted a pretax profit of GBP1.5 million for the year to end-March 2015, on revenue of GBP4.0 million.
"The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace. With the acquisition of SystemsUp, iomart has broadened its ability to engage at a strategic level and act as a trusted advisor on cloud strategy to organisations wanting to create the right blend of cloud services, both public and private, to fit their requirements," said Chief Executive Angus MacSween in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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