iomart resumes M&A activity with Concepta acquisition

It involves an initial cash consideration of £10.5m

Cloud hosting firm Iomart has acquired Concepta Captial to help strengthen its channel business.

The deal will see the Scottish company acquire the entire issued share capital of Concepta, a holding company for a group including the ORIIUM and Pavilion IT brands.

It involves an initial cash consideration of £10.5m, although an extra £4m will be payable based on future performance.

ORIIUM is a channel-only organisation working with value added resellers and managed service providers to deliver data and application management solutions to end users.

Pavilion IT is a business focussed on the legal and accounting professional services sector providing hybrid and cloud infrastructure technology.

Concepta had revenues of £10m and EBITDA (pre-exceptional items) of £1.6m for the year ended 31 March 2022.

Completion of the acquisition is subject to written confirmation from the Department for Business, Energy & Industrial Strategy.

Reece Donovan, CEO of iomart, said: "We are delighted to welcome the Concepta team to iomart, marking the resumption of our M&A activity in line with our strategic plans.

"After careful assessment of the market, in Concepta we found a business and team that fits within our strategic growth plan by, extending the Group's product, skills and capabilities, strengthening our direct and indirect routes to market, and complementing the Group's strong financial model."

He added: "ORIIUM has a long track record and strong reputation across the indirect channel which allows us to broaden our reach whilst enhancing our expertise within the data management service layer. Pavilion IT provides a new and diverse customer base adding scale, technology and geographical coverage to our existing infrastructure reselling and support activities.

"This is a meaningful step as we position the Group for its next phase of growth as a leading secure hybrid cloud business."

Chris Kiaie, who established the ORIIUM business and formed the Concepta Group, will continue to lead the ORIIUM and Pavilion IT businesses as their CEO.

He said: "Joining iomart marks the beginning of the next phase of growth for Concepta, and is a very exciting time for our highly skilled, experienced and ambitious team. It allows us to leverage joint capabilities, capitalise on our understanding of the markets we operate in and build upon the significant achievements to date."