iomart Group plc, the managed hosting and cloud computing services company has continued expanding its offering in the UK market with the purchase of Switch Media Limited. The award-winning Switch Media Limited is a domain name and hosting company based in Liverpool.
iomart acquired the entire issued share capital of Switch Media Limited for a total cash consideration of £1.25 million.
Switch Media supplies domain name and shared hosting services to small businesses, operating in a similar market to iomart’s Easyspace division. The acquisition of Switch Media brings with it a customer base of more than 10,000, providing a strong base of additional business from which the Glasgow-headquartered Group can expand its small company hosting business.
Angus MacSween, CEO of iomart Group plc, said buying Switch Media is iomart’s second purchase in six months and continues iomart’s policy of expansion by both organic and acquired growth.
Switch Media is an excellent complementary business to iomart’s existing operations and trades in the small company segment of the hosting services market, said MacSween. It will enhance the growth of iomart through expansion of the Group’s customer base and access to new clients and is a further step in the achievement of iomart’s strategy of building a leading hosting company in the UK, he stated.
Chris Evans, Managing Director of Switch Media Limited, noted the investment is a very positive move for Switch Media. Evans said the move allows Switch Media access to iomart’s own wholly-owned data centres and its full range of cloud computing services, enabling it offer its customers a wider range of services.
Switch Media was founded in 2002 and has built an excellent reputation for combining a solid hosting service with creativity. It has produced work for clients including Samsung, Littlewoods, Harley Davidson, Wella, Island Records and Wagamama and is an approved supplier of new media to the BBC.
Last year Switch Media won Gold at the prestigious Roses Advertising Awards for its design work on ‘Letterpool’, the book project that explored Liverpool’s history and culture through its signs, branding, language and graffiti.
Angus MacSween added that the integration of Switch Media should allow the firm achieve a significant level of cost savings and should improve the company’s EBITDA margin as well as bring an immediate earnings enhancement to iomart Group as a whole.
In November 2010 iomart bought Titan Internet, one of the UK’s most respected and technically advanced hosting companies for £4.2 million.