IOMart buys Redstation for £6.6m

[Reece-DM]

Fresh in: Redstation has been sold:

http://www.bbc.co.uk/news/uk-scotland-scotland-business-23969297

Glasgow cloud computing company Iomart has bought Hampshire-based rival Redstation for £6.6m in cash and shares.

A further £1.5m is payable depending on Redstation achieving profit targets.

Redstation manages thousands of servers for clients in more than 50 countries and had a turnover of £5.2m last year.

Chief executive of Iomart Angus MacSween said: "We are delighted to complement our continued organic growth through the acquisition of Redstation."

He added: "The addition of Redstation will consolidate our position as the leading player in the dedicated server market in the UK.

"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."

Iomart has made a number of acquisitions over the past few years and has previously said that cloud computing was in a period of consolidation.

 

[Francisco]

Maybe iomart knows how to use BGP communities?

Francisco

 

[drmike]

Redstation manages thousands of servers for clients in more than 50 countries and had a turnover of £5.2m last year.

I really thought they bigger than this.

Look for quite a big more consolidation globally.  Things are damn tight and sector is certainly showing customer spend weakness.

 

[Francisco]

I really thought they bigger than this.

Look for quite a big more consolidation globally.  Things are damn tight and sector is certainly showing customer spend weakness.

Remember that's in pounds so you're talking...$8M USD?

Francisco

 

[drmike]

Totally

As always I wonder what they had as tangible assets (equipment and physical plant build out and of course real estate).

Some of these deals are heavily skewed in value for other assets and no reflective of customers and revolving income.

 

[Patrick]

Got an email as a ex-customer / with active account.

iomart Group Plc announced to the London Stock Exchange that it had acquired the entire issued share capital of Redstation on Thursday 05th September 2013, for the maximum consideration of £8M.

 

[drmike]

So it was a stock buyout?

 

[ultimatehostings]

Looks like they're on the go, redstation is their 3rd acquisition since 2010, they pad £1.5m for shares, rest cash from what I read. 

 

[Jack]

I think it will make Redstation better the fact it's now owned by IOMart.

 

[kaniini]

My main concern is what this is going to do to my IP transit rates.  There's no way we're going to continue to get 300mbps 95th% for 95p per meg.

Time to call up HE, I suppose...