UK cloud company iomart (AIM: IOM) has acquired the entire issued share capital of SystemsUp, an IT consultancy specializing in the design and delivery of public cloud hosting solutions, for an estimated total consideration of £12.5 million.
SystemsUp is a London consultancy specializing in the delivery of IT transformation using public cloud. It has a range of expertise in the design and delivery of public cloud hosting solutions and is a G-Cloud partner to Google, an authorized Government Partner to Amazon Web Services (AWS) and a Microsoft Gold Partner.
£9.0m has been paid in cash as an initial consideration. A further contingent consideration is due in respect of delivery of revenues, on an adjusted basis, for the year to March 2016. It has been estimated that this contingent payment could be in the region of £1.0m to £3.5m.
In the 12 months to 31 March 2015, SystemsUp recorded revenue of £4m with a Profit Before Tax of £1.5m, double that of 2014.
Public Cloud Strategy
“The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace,” said Angus MacSween, CEO of iomart. “With the acquisition of SystemsUp, iomart has broadened its ability to engage at a strategic level and act as a trusted advisor on cloud strategy to organizations wanting to create the right blend of cloud services, both public and private, to fit their requirements.”
Although now a part of the iomart Group of companies, SystemsUp will retain its role as an impartial, agnostic, expert consultancy on public cloud strategy.
“We have already built up a significant reputation and expertise in helping organisations use public cloud to drive down IT costs and improve efficiency,” said Peter Burgess, Managing Director of SystemsUp. “As part of iomart we can leverage their award winning Managed Services offerings to deepen and widen our toolset to deliver a broader set of cloud services, alongside continuing to deliver the strategic advice and deployment of complex large public and private sector cloud projects.”