Iomart Group acquires Redstation in £8.1m deal
Cloud computing company Iomart Group has announced the acquisition of Redstation in a deal wrote around £8.1m.
The deal will see £5.1m paid in cash for the server provider based in Hampshire, with a further £1.5m in new ordinary shares, and a further £1.5m to be paid subject to profit targets being achieved by the end of March 2014.
Redstation provides sales, support and technical operations to around 3,000 customers, and will operate alongside Rapidswitch to grow Iomart's server hosting to around 20,000 servers.
Angus MacSween, CEO of Iomart Group said the acquisition of Redstation would consolidate the company's position ad a leading player in the UK server market.
"Redstation's customers deliver a wide variety of cloud applications and services from the physical servers they buy from them, further underpinning iomart's strategic goal of providing the 'picks and shovels' of the cloud environment through the provision of the complex infrastructure required," he added.
Redstation's last financial year, ending 31 June, saw it report net assets worth £1.8m.