Iomart Group PLC - Glasgow-based cloud computing - Agrees to buy Extrinsica Global Holdings Ltd for an initial GBP4.0 million in cash and shares, with up to GBP300,000 more in cash payable in 2023 on agreed targets. A further GBP4.0 million to GBP7.0 million earn-out in cash and shares is due based on Extrinsica's financial 2024 profit. Of the initial payment, GBP2.0 million will be satisfied by the issue of about 1.6 million new shares in Iomart at GBP1.28 each.
Extrinsica is a Microsoft Azure Cloud solution services provider with offerings including managed Azure Cloud, Azure solution design and implementation services, support & optimisation services and licencing. For the financial year that ended on March 31, Extrinsica produced revenue of GBP7.4 million, up 40% on the year before, and earnings before interest, tax, depreciation and amortisation of GBP100,000.
Iomart says the acquisition of Microsoft Azure expertise and experience aligns with its secure hybrid cloud strategy.
Current stock price: 172.80 pence each, up 3.5% on Monday morning in London
12-month change: down 7.1%
By Xindi Wei, Alliance News reporter
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Iomart (IOM)