Aug17

Acquisitions in the Cloud Hosting Arena

With the cloud hosting industry currently booming thanks to the substantial increases in customers and people adopting the cloud, it is of little surprise to hear that another big money deal has been made within the industry.

Acquisition

Glasgow based cloud hosting firm, Iomart, has bought Melbourne Server Hosting in, what is reported to be, a £7 million deal. Do not be fooled however, Melbourne Server Hosting is based in Manchester, not, as the name would suggest, Melbourne.

The £7 million deal is said to include 30 staff, two data centres, and the facilities located in Manchester. This has now, therefore, taken Iomart’s total number of UK data centres to seven. Furthermore, it brings 600 new customers to Iomart.

Chief executive at Iomart, Angus MacSween, has said: “This is an important acquisition for us as it gives us our first physical data centre presence in the north west of England. It increases Iomart Group’s network of fully owned and managed UK data centres to seven, and puts us firmly at the heart of the growing online and media business hub that Manchester has become.”

Additional Purchase

They haven’t stopped there either with a further £1.24 million having been spent on the purchase of small web hosting firm, Skymarket. It was reported that Skymarket, in 2011, turned over revenue of £1 million.

Melbourne Server Hosting was founded by Daniel Keighron-Foster twelve years ago whilst he was studying at university. Last year, the company turned-over £2.9 million.

In addition, Melbourne Server Hosting’s total earnings totalled £630,000 whilst there were net assets of £260,000. There was also a net debt of £170,000.

The deal was financed with the use of £5 million from Iomart’s cash facility and a remaining injection of cash came from “cash resources”.

This article was brought to you by VI.net, for dedicated server hosting, cloud servers and 24/7 support visit our site here www.vi.net

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