iomart Group nets managed hosting company Titan Internet for £4.2M cash

iomart Group plc (AIM:IOM), the managed hosting and cloud computing services company, has today acquired the entire issued share capital of Titan Internet Limited, a leading UK managed server hosting company, for £3.6M cash on completion with a further amount of up to £0.6M payable in April 2011.

Titan Internet has become one of the UK’s most respected and technically advanced hosting companies, and has achieved a well deserved reputation for excellent customer delivery and service.

Titan is focussed on delivering highly reliable complex managed and virtualised hosting solutions and has built an impressive client base, currently managing over 1,000 servers on behalf of clients ranging from SMEs to large corporates.

As at 31 August 2009, the net assets of Titan were £765k with revenues of £3.4M, EBITDA of £648k and pre-tax profits of £342k. Titan currently has net cash of approximately £500k.

Angus MacSween, CEO iomart Group plc, stated: “We announced back in June that the Group intended to become the UK’s leader in the relatively new cloud computing market through a combination of organic growth and acquisition. Our enviable position of having a strong balance sheet and an additional £10 million credit facility from Lloyds Banking Group, enables us to make strategic and complementary acquisitions such as Titan Internet when they present themselves.”

“In Titan we have acquired a profitable managed hosting business with a strong service brand that we expect to continue to thrive within our group environment. I am delighted that the management team responsible for building Titan has agreed to continue to drive the business forward under our ownership”.

MacSween added: “The opportunities that this acquisition represents to add value through infrastructure, technology and marketing synergies are significant. In consequence, iomart expects the acquisition to be immediately earnings enhancing before the costs of integration synergies.”

Lee Christie MD of Titan Internet stated: “We believe today’s announcement will bring enormous benefits to both our employees and customers alike. We are delighted to be joining the iomart Group at such an exciting time in the evolution of hosting services. We will benefit from the economies of scale, product innovation and financial support that the Group gives us, and we are confident we will be able to accelerate our growth and revenues as a result.”

Finally MacSween added: “The Group continues to make excellent progress in the buoyant, but embryonic, cloud computing marketplace. We are now established, gaining market recognition and a reputation for service excellence, and I believe we are now extremely well placed to rapidly grow our market share. Today’s acquisition announcement cements our intent to be the UK’s market leader in this arena.”

For further information:
iomart Group Press Office
6 Atlantic Quay, 55 Robertson Street, Glasgow, G2 8JD, UK
TEL: 0141 931 6400

About iomart Group plc

iomart Group is one of the UK’s leading providers of managed hosting and cloud computing services. From a single server through to private cloud networks, iomart specialises in the delivery and management of mission-critical hosting services, enabling customers to reduce the costs, complexity and risks associated with maintaining their own web and online applications.

By physically owning and managing its own network infrastructure, including five state-of-the-art data centres in the UK, iomart offers world-beating levels of service to its customers. The Group offers a unique 100% uptime guarantee with all hosting services being engineered to ensure no single point of failure.

Services offered include: Managed Hosting, Colocation, Complex Hosting solutions, Content Delivery Networks, IP Transit, Data Centre Services and Cloud Computing.

About Titan Internet

Based in Rochford, Essex, Titan Internet Ltd was founded by Lee Christie in 2001. Nearly a decade later, Titan Internet has grown each year since it was established. Titan has expanded to become one the UK’s leading technical hosting companies.

The Company currently manages over 1,000 servers on behalf of a range of clients, from SMEs to large corporates.

Financial information for Titan Internet Ltd has been sourced from unaudited, financial due diligence created by external accountants.

For more information on the changes, read the iomart FAQ.