As part of its ‘acquisitive strategy’ Glasgow-based cloud computing company iomart has acquired the entire issued share capital of Concepta Capital in a deal that could rise to £14.5 million.

iomart will pay an initial cash consideration on completion of £10.5m, subject to potential completion accounts adjustments. In addition, a further £4m will be paid depending on the future profit performance of the Concepta business in the year ending 30 June 2023.

Concepta is currently carrying bank debt of £1.5m which iomart has taken on and settled as part of the completion process.

The initial consideration, debt settlement and any earn out consideration will be financed through a combination of existing bank facilities and cash on the company’s balance sheet.

The vendors of Concepta are the existing management team, with Chris Kiaie, CEO, having a majority stake. The acquisition is expected to be immediately earnings accretive for iomart.

Reece Donovan, CEO of iomart Group, commented: “We are delighted to welcome the Concepta team to iomart, marking the resumption of our M&A activity in line with our strategic plans.

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“After careful assessment of the market, in Concepta we found a business and team that fits within our strategic growth plan by, extending the Group’s product, skills and capabilities, strengthening our direct and indirect routes to market, and complementing the Group’s strong financial model.

“ORIIUM has a long track record and strong reputation across the indirect channel which allows us to broaden our reach whilst enhancing our expertise within the data management service layer. Pavilion IT provides a new and diverse customer base adding scale, technology and geographical coverage to our existing infrastructure reselling and support activities.

“This is a meaningful step as we position the Group for its next phase of growth as a leading secure hybrid cloud business.”

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