A group of Yorkshire IT companies has been bought in a £10.5m deal by Glasgow-based iomart Group plc.
Leeds-based data management specialist ORIIUM and Sheffield-based Pavilion IT are part of the Concepta Capital group, which iomart will pay an initial cash consideration for, followed by a potential £4m contingent on performance in the year to the end of June 2023. The deal, which is subject to Government clearance, is said to complement iomart's capabilities in line with its hybrid cloud strategy.
Concepta Group founder and majority stakeholder Chris Kiaie will continue to lead the ORIIUM and Pavilion IT businesses as their CEO, with legal, financial and governance support from the wider group. Bank debt of £1.5m owed by Concepta will be settled by iomart as part of the completion process.
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Reece Donovan, CEO of iomart Group plc, said: "We are delighted to welcome the Concepta team to iomart, marking the resumption of our merger and acquisition activity in line with our strategic plans. 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 added: "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."
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