Cloud services supplier Iomart has bought public sector cloud solutions specialist Systemsup for an estimated £12.5m.
SystemsUp is a London consultancy specialising in the delivery of ICT transformation and is a G-Cloud partner to Google as well as an authorised government partner to Amazon Web Services.
Under the deal, SystemsUp will remain as a standalone brand within the iomart group of companies.
Angus MacSween, chief executive of iomart, said: “The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace. With the acquisition of SystemsUp, iomart has broadened its ability to engage at a strategic level and act as a trusted adviser on cloud strategy.”
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Iomart paid £9m in cash as an initial consideration, with a further payment of between £1m and £3.5m, based on revenue targets, to be paid after March 2016.
Peter Burgess, Managing Director of SystemsUp, said: “As part of iomart we can leverage their award winning managed services offerings to deepen and widen our toolset to deliver a broader set of cloud services, alongside continuing to deliver the strategic advice and deployment of complex large public and private sector cloud projects.”
In the 12 months to the end of March, SystemsUp recorded revenue of £4m with a profit before tax of £1.5m, double that of the previous year.
In May, the firm announced that it had helped Poole Borough Council save £60,000 through a cloud strategy.
It has also won a series of contracts through G-Cloud with Buckinghamshire and Milton Keynes Fire Authority, HS2 Limited The Maritime and Coastguard Agency and the Advisory Conciliation and Arbitration Service.
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