LONDON (Alliance News) - Cloud computing company iomart Group PLC said Tuesday that it has acquired Hemel Hempstead-based United Communications Ltd for a total of GBP11.0 million.
It will pay GBP7.5 million in cash on completion, with a further GBP3.5 million payable contingent on earnings before interest and tax performance targets to April 2016 and 2017.
United Communications, which trades as United Hosting, provides managed hosting services and domains, as well as leasing data centre space in London and in Dallas, Texas. It reported Ebit of GBP1.3 million for the year to end-April 2015, on revenue of GBP2.4 million.
iomart expects the acquisition to add to earnings immediately, before costs related to the acquisition.
"In line with previous acquisitions made by Iomart, United Hosting is a profitable, growing business whose services reflect those we offer. As such, the business fits well within our acquisition criteria and will be a valuable addition to the group," said Chief Executive Angus MacSween in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Iomart (IOM)