Iomart acquires cloud cohort SystemsUp for £12.5m

London-listed firm boosts private cloud credentials

UK cloud company, Iomart has acquired London-based SystemsUp, which partners with Google, Amazon, and Microsoft.

The acquisition was worth around £12.5m, with £9m being paid in cash and the rest coming in the form of a contingent payment based on revenues for the year ending March 2016. This payment is forecast to be in the region on £1m to £3.5m.according to Iomart.

SystemUp's public cloud capabilities will be added to its new owners largely private cloud-focused business. SystemUp offers design and delivery of public cloud solutions, and is a G-Cloud partner of Google, an authorised government partner to Amazon Web Services, and a Microsoft Gold Partner. It recorded revenues of around £4m in 2014.

Following the acquisition, it will remain a separate entity to its new owner, offering consultancy on public cloud strategies.

Angus MacSween, CEO of Iomart, said: "The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace.

"With the acquisition of SystemUp, Iomart has broadened its ability to engage at a strategic level and act as a trusted advisor on cloud strategy to organisations wanting to create the right blend of cloud sergices, both public and private, to fit their requirements."

Iomart had its "buy" stock rating handed back by analysts at FinnCap, according to WKRB News.