Iomart Acquires Hosting Provider ServerSpace for $6.65 Million US

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This article originally appeared at The WHIR

Iomart reported its half yearly results on Tuesday, including the disclosure that it has acquired hosting and cloud company ServerSpace for £4.25 million ($6.65 million USD).

ServerSpace is based in London and was founded in 2006 by Irish entrepreneur Tim Pat Dufficy. It provides managed hosting, cloud hosting, collocation, and connectivity services, and was named by Deloitte as one of the fastest growing UK tech companies in both 2012 and 2013.

ServerSpace currently rents its data center space, according to the Irish Times, so as a subsidiary of iomart, which operates eight data centers in the UK alone, it should be able to substantially reduce its overhead cost.

“The hosting market is hugely competitive and one of the problems we’ve had is that although we’ve got the expertise and know-how, we’ve often been beaten to the bigger deals because we’re small. Having the weight of a big and impressive parent company like iomart behind us will give us a much better chance of winning those deals,” Dufficy, who will remain with ServerSpace, told the Irish Times.

Iomart considers itself big enough to compete, as shown by its rejection of a takeover bid by Host Europe in July.

The company’s statement also mentions recent partnerships with Microsoft for its Cloud Solution Provider Program and with EMC to be its European partner for the launch of EMC Enterprise Hybrid Cloud.

Iomart shares fell over 20 percent in Tuesday trading on the London Stock Exchange.

Recent hosting acquisitions of hosting companies include Cloud Equity Group’s purchase of Just199 Hosting and Arvixe’s acquisition by EIG, and in Europe cloud provider Ipeer’s October acquisition by TeliaSonera.

This article originally appeared at: http://www.thewhir.com/web-hosting-news/iomart-acquires-hosting-provider-serverspace-6-65-million-us