StockMarketWire.com - Cloud computing company iomart has acquired Redstation on a cash-free/debt-free basis with normalised working capital. iomart says £6.6m has been paid as an initial consideration, of which £5.1m has been paid in cash and £1.5m satisfied by the issue of 515,464 new ordinary shares.

A further contingent consideration of up to £1.5m is potentially payable in cash subject to Redstation achieving certain profit targets in the period to end March 2014.

Redstation is a Hampshire based provider of dedicated servers and bandwidth. It operates a full sales, support and technical operation in Gosport with two freehold datacentres providing services to around 3,000 customers.

Through the acquisition of Redstation, and operating alongside its existing Rapidswitch brand, this will significantly enhance iomart's position as one of the leading UK-based providers of dedicated servers housing approximately 20,000 physical servers on behalf of customers.




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