LONDON (ShareCast) - Glasgow-based cloud computing company Iomart has bought privately-owned Hampshire server company Redstation for up to 8.1m pounds.

It said it had paid an initial £6.6m comprising of £5.1m in cash, which will be funded out of its existing banking facilities, and £1.5m in new shares. It may pay a further £1.5m subject to Redstation meeting certain profit targets in the year to March 2014.

Redstation, founded in 1998, owns two data centres providing services to around 3,000 customers and made underlying earning of £2.4m in the year to the end of June on turnover of £5.2m.

Iomart Chief Executive Angus MacSween said: “The addition of Redstation will consolidate our position as the leading player in the dedicated service 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.”

Shares in Iomart were up 0.17% at 289p at 09:20 on Thursday.

TB

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE