Iomart swoops on rival Titan in £4.2m deal

IOMART, the Glasgow-based web hosting and cloud computing business, has bought a rival business in a deal worth up to £4.2 million.

Titan Internet of Essex, which manages more than 1,000 servers for customers, has sales of 3.4m and pre-tax profits of 342,000 in its latest financial year.

Angus MacSween, chief executive of AIM-listed Iomart, said the deal was in line with its strategy of expansion through organic growth and acquisition.

He said the firm would be exploring a number of other acquisition opportunities over the coming months.

Last month Iomart said it was on track to beat forecasts for interim profits of 2.35m and said its move into "cloud computing", where clients access data and software online rather than on individual computer terminals, had led to a substantial number of contracts.