(WEB HOST INDUSTRY REVIEW) — iomart group (www.iomart.com) announced on Thursday it has acquired managed hosting provider RapidSwitch (www.rapidswitch.com) for $6.5 million in cash with a further $1.4 million payable on March 31, 2010.
Iomart’s managed hosting and data services division recently rebranded to iomart hosting to reflect its focus on hosting, launching a new website as part of the initiative.
RapidSwitch provides managed hosting solutions for customers in Europe, managing over 4,000 dedicated servers on behalf of 1,600 customers ranging from SMEs through to large corporate.
For the year leading to March 2008, the company’s revenues grew from $2.1 to 3.9 million and EBITDA was $1.2 million. The company has maintained similar rates of revenue growth through to March 2009.
Iomart says the acquisition of RapidSwitch will provide the company with “additional highly skilled technical expertise and increases the Group’s data center capacity significantly,” positioning it to offer a “comprehensive range of hosted servers, high density cloud computing, virtualization and disaster recovery solutions” to its customers.
“iomart Group’s strong balance sheet, a direct result of our recent disposal of our noncore directory business to BT, has released cash to make strategic acquisitions,” says Angus MacSween, CEO iomart Group. “The acquisition is in line with iomart’s strategy of becoming the UK’s foremost hosting company, focused on the delivery of managed hosting environments and solutions, be they virtual, dedicated, cloud, or SaaS.”
The acquistion will also bring iomart its fifth data center, adding to its existing portfolio of four newly commissioned UK wide properties.
Built last year, RapidSwitch’s Maidenhead, Berkshire data center is now operational, and when fully built out it will give iomart Group the capacity to accommodate a further 600 racks.
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