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iomart is acquiring dedicated hosting provider Redstation for £8m

iomart is acquiring dedicated hosting provider Redstation for £8m

Glasgow-based cloud computing firm Iomart Group on Friday announced the acquisition of dedicated server and managed service provider Redstation for £8m.

Redstation provides hosting services from its two datacentres in Gosport, Hampshire and caters to a customer base of 3,000. Between June 2012 and 2013 the company turned over £5.2m.

As part of the deal iomart Group paid an initial fee of £6.6m, of which £5.1m was paid out in cash, and £1.5m in shares of the company, with a further £1.5m to be paid out if Redstation achieves certain profit targets.

“The addition of Redstation will consolidate our position as the leading player in the dedicated server market in the UK,” said Angus MacSween, CEO of iomart Group. “Redstation’s customers deliver a wide variety of cloud applications and services so this acquisition further underpins iomart’s position as the main provider of the complex infrastructure required by UK businesses to support the cloud environment.”

Iomart Group already owns RapidSwitch, a dedicated hosting outfit based in Maidenhead, and wwith Redstation in its arsenal the company now claims to offer its dedicated hosting and cloud services from 22,000 servers spread across ten datacentres in the UK.

As the summer comes to a close so too does a brief period of consolidation in the UK-based cloud infrastructure market. In early July one of iomart’s biggest competitors UKFast acquired the UK arm of BurstNET, an American bare-metal hosting company, giving UKFast an extra 1,500 customers in the process.