iomart splashes out on Backup Technologies

Cloud specialist iomart has bolstered its portfolio after acquiring hosted backup and disaster recovery player Backup Technologies

Cloud specialist iomart has made its second acquisition in the space of a month after buying hosted backup and disaster recovery player Backup Technology for £23m.

The deal comes just a month after iomart acquired server and managed services firm Redstation for £8m and both deals are intended to increase the customer base and revenues.

iomart is paying £17.5m in cash and £3.5m from the issue of shares for Leeds-based Backup Technology, with a further £2m being paid in cash on 31 January next year.

Backup Technology has a customer base including 200 enterprise clients, including Liverpool and Everton football clubs, and was set up in 2005 to look after data for corporates.

Angus MacSween, CEO of iomart Group, said that Backup Technology (BTL) had been on its "radar for some time" as a result of carving out a decent position in the market.

“BTL gives iomart a solid and well-established platform to grow further from, with a very good enterprise customer base and little crossover from the existing Group base.  It’s a very good strategic fit, complementing our portfolio of existing products," he said.

Simon Chappell, the founder and owner of BTL, who is leaving to pursue new opportunities, said that it was a good move for its 16 employees and customer base to strike a deal with iomart.

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