Scotland business

Iomart buys Titan Internet for £4.2m

Binary code and fibre optic strands
Image caption Iomart has signalled that it is looking for other acquisitions

Internet web hosting firm Iomart has said it is buying rival company Titan Internet for £4.2m.

Glasgow-based Iomart will pay £3.6m on completion of the deal and another £600,000 by April 2011.

Titan currently manages more than 1,000 servers on behalf of clients from small businesses to large corporations.

Angus McSween chief executive of Iomart, said: "The purchase of Titan Internet provides us with additional highly-skilled technical expertise."

He added: "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."

Cloud computing is a relatively new term and is the management and provision of applications, information and data to customers.

Last year Iomart bought another company, Rapidswitch for £5.3m.

The group also revealed that it had secured a £10m credit facility from Lloyds Banking Group to support its growth strategy.

It said it would "continue to explore a number of complementary acquisition opportunities over the months ahead."

Iomart was founded in 1998, starting out as a telecoms and internet service provider.

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