Glasgow-headquartered Iomart Group plc has agreed to acquire cloud and managed hosting provider ServerSpace, founded by Dublin-born entrepreneur Tim Pat Dufficy, for a maximum consideration of stg£4.25m.
Cloud company Iomart announced the acquisition as part of its interim statement to the London Stock Exchange on Tuesday morning.
Dufficy established ServerSpace in London in 2006, following years working for his family’s business, Ocean and General, a shipping company based in Cork.
ServerSpace provides cloud and managed hosting, as well as colocation and connectivity to clients, such as Jurys Inns hotel group. Deloitte named ServerSpace as one of the fastest-growing tech companies in the UK in 2012 and again in 2013.
“The hosting market is hugely competitive and one of the problems we’ve had is that although we’ve got the expertise and know-how, we’ve often been beaten to the bigger deals because we’re small. Having the weight of a big and impressive parent company like Iomart behind us will give us a much better chance of winning those deals,” said Dufficy, who will remain with the company.
ServerSpace and its customers are also set to benefit from Iomart’s network of UK data centres, which will eliminate much of the costs paid to rent data-centre space.
During Iomart’s consolidated half-yearly results announcement, the AIM-listed company reported a 28pc increase in revenues for the period ended 30 September 2014.