Iomart extends reach with Concepta deal
Iomart Group, the Glasgow-based cloud computing company, has acquired Concepta Capital, a holding company for a group which includes the ORIIUM and Pavilion IT brands.
The deal resumes Iomart’s M&A activity and will extend its product range and skills, it said.
It involves an initial cash consideration of £10.5m and a potential total of £14.5m based on future performance.
ORIIUM is a channel only IT service provider specialising in data management solutions, and Pavilion IT is a provider of cloud and hybrid infrastructure solutions and support services.
Concepta had revenues of c.£10m and EBITDA (pre-exceptional items) of c.£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 in accordance with the National Security and Investment Act 2021. This clearance is required as ORIIUM provides data management services to UK government bodies. This is expected shortly.
Chris Kiaie, who established the ORIIUM business and formed the Concepta Group and is its majority shareholder, will continue to lead the ORIIUM and Pavilion IT businesses as their CEO, supported by his team.
Concepta currently has bank debt of £1.5m which will be taken on by iomart and settled as part of the completion process.
The initial consideration, debt settlement and any earn out consideration will be financed through a combination of existing bank facilities and cash on the company’s balance sheet.
Reece Donovan, CEO of iomart Group, said the deal marks “the resumption of our M&A activity in line with our strategic plans.”
He added: “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.
“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.”
Mr Kiaie, commented: “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.
“Identifying a business that shares our culture, goals and aspirations was incredibly important, and iomart’s commitment to exceptional customer service, team wellbeing and personal development represents our values perfectly.
“The team and I are all incredibly excited to be working as part of the wider group and look forward to being part of iomart’s incredible ongoing success.”