iomart Group Nets Managed Hosting Company Titan Internet for GBP4.2M Cash

By Iomart Group Plc, PRNE
Sunday, October 31, 2010

LONDON, November 1, 2010 - iomart Group plc ( ) (AIM:IOM), the managed hosting
and cloud computing services company, has today acquired the entire issued
share capital of Titan Internet Limited, a leading UK managed server hosting
company, for GBP3.6M cash on completion with a further amount of up to
GBP0.6M payable in April 2011.

Titan Internet ( has become one
of the UK's most respected and technically advanced hosting companies, and
has achieved a well deserved reputation for excellent customer delivery and

Titan is focussed on delivering highly reliable complex managed and
virtualised hosting solutions and has built an impressive client base,
currently managing over 1,000 servers on behalf of clients ranging from SMEs
to large corporates.

As at 31 August 2009, the net assets of Titan were GBP765k with revenues
of GBP3.4M, EBITDA of GBP648k and pre-tax profits of GBP342k. Titan currently
has net cash of approximately GBP500k.

Angus MacSween, CEO iomart Group plc, stated: "We announced back in June
that the Group intended to become the UK's leader in the relatively new cloud
computing market through a combination of organic growth and acquisition. Our
enviable position of having a strong balance sheet and an additional GBP10
credit facility from Lloyds Banking Group, enables us to make
strategic and complementary acquisitions such as Titan Internet when they
present themselves."

"In Titan we have acquired a profitable managed hosting business with a
strong service brand that we expect to continue to thrive within our group
environment. I am delighted that the management team responsible for building
Titan has agreed to continue to drive the business forward under our

MacSween added: "The opportunities that this acquisition represents to
add value through infrastructure, technology and marketing synergies are
significant. In consequence, iomart expects the acquisition to be immediately
earnings enhancing before the costs of integration synergies."

Lee Christie MD of Titan Internet stated: "We believe today's
announcement will bring enormous benefits to both our employees and customers
alike. We are delighted to be joining the iomart Group at such an exciting
time in the evolution of hosting services. We will benefit from the economies
of scale, product innovation and financial support that the Group gives us,
and we are confident we will be able to accelerate our growth and revenues as
a result."

Finally MacSween added: "The Group continues to make excellent progress
in the buoyant, but embryonic, cloud computing marketplace. We are now
established, gaining market recognition and a reputation for service
excellence, and I believe we are now extremely well placed to rapidly grow
our market share. Today's acquisition announcement cements our intent to be
the UK's market leader in this arena."

About iomart Group plc

iomart Group is one of the UK's leading providers of managed hosting and
cloud computing services. From a single server through to private cloud
networks, iomart specialises in the delivery and management of
mission-critical hosting services, enabling customers to reduce the costs,
complexity and risks associated with maintaining their own web and online

By physically owning and managing its own network infrastructure,
including five state-of-the-art data centres in the UK, iomart offers
world-beating levels of service to its customers. The Group offers a unique
100% uptime guarantee with all hosting services being engineered to ensure no
single point of failure.

Services offered include: Managed Hosting, Colocation, Complex Hosting
solutions, Content Delivery Networks, IP Transit, Data Centre Services and
Cloud Computing.

About Titan Internet

Based in Rochford, Essex, Titan Internet Ltd was founded by Lee Christie
in 2001.

Nearly a decade later, Titan Internet has grown each year since it was
established. Titan has expanded to become one the UK's leading technical
hosting companies.

The Company currently manages over 1,000 servers on behalf of a range of
clients, from SMEs to large corporates.


Financial information for Titan Internet Ltd has been sourced from
unaudited, financial due diligence created by external accountants.

    Contact Details
    iomart Group Press Office
    Lister Pavilion, Kelvin Campus, Glasgow, G20 0SP
    TEL: +44(0)141-931-6400

Contact Details: iomart Group Press Office, Lister Pavilion, Kelvin Campus, Glasgow, G20 0SP, TEL: +44(0)141-931-6400, Email: marketing at

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