Glasgow-based cloud computing firm Iomart Group said it agreed to acquire Concepta Capital Limited, a holding company of a group of firms that includes the ORIIUM and Pavilion IT brands, for an initial cash consideration of £10.5 million.
A deferred contingent cash payment of up to £4 million will be made “dependent on the future profit performance” of the Concepta business in the year ending June 30, 2023.
“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 …” said Iomart.
“ORIIUM, established in 2007, is a channel-only organisation working with value added resellers and managed service providers to deliver best in class data and application management solutions to end users.
“With this acquisition, iomart gains an independent wholesale operation that understands the UK IT channel deeply and has built trust through long-standing strategic partner relationships …
“Concepta acquired Pavilion IT, a business established for over 30 years, in 2018 and in 2021 acquired P2 Technologies, a business focussed on the legal and accounting professional services sector to add vertical specialisation.
“This created a strong direct sales organisation with over 250 customers under one unified operational delivery team offering a range of hybrid and cloud infrastructure technology solutions plus professional services and on-going customer support arrangements.
“This customer base will have access to iomart’s hybrid cloud solutions and services.”
Iomart CEO Reece Donovan said: “We are delighted to welcome the Concepta team to iomart, marking the resumption of our M&A 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.”