Iomart nets web hosting company

Published on Monday 6 September 2004 13:04

IOMART, the Scottish software and internet services company, today added 140,000 new customers after snapping up web hosting firm Easyspace for £12 million.

The Scots company said the acquisition - being funded by a share placing and cash - would "significantly enhance the scale and profitability" of its internet business.

The transaction comes on the back of similar deals involving internet services firms Internetters and Nicnames which have now been integrated into the same division and are already "performing ahead of budget".

Easyspace, which currently employs 15 staff, offers web hosting services and also supplies internet domain names. It boasts 300,000 live domains and 140,000 clients of which 40,000 are hosting customers.

Glasgow-based iomart said it planned to expand its sales force in order to offer additional products and services to Easyspace’s customer base, while reducing the Surrey firm’s cost base by about 1m over the next 18 months.

Commenting on the deal, iomart chief executive Angus MacSween said: "The acquisition of Easyspace is a significant development for us and supplements the organic growth of the division, which has been adding new customers at an average of more that 1200 per month since April.

Mr MacSween and fellow directors Nick Kuenssberg, Sarah Haran and Fred Shedden have subscribed for new shares.