Iomart buys Accesspoint as H1 revenue rises 18%

Iomart CEO Lucy Dimes

Glasgow-based cloud computing firm Iomart Group said it has agreed to acquire Accesspoint Group Holdings Limited, the holding company of Accesspoint Technologies Limited.

Based in North East London, Accesspoint is an IT hosting partner focused on the UK legal industry.

New of the deal came as Iomart announced first-half results showing revenue rose 18% to £62 million for the six months ended September 30, 2023, and adjusted profit before tax rose 3% to £7.6. million.

The initial consideration for the acquisition is £4.5 million in cash, with a potential further £500,000 in cash payable on the achievement of certain post-acquisition milestones.

The acquisition also includes up to a further £1.4 million contingent earn-out payment based on the profitability of Accesspoint for the 12 months ending August 31, 2024.

“Accesspoint provides a suite of managed and hosted services including infrastructure hosting, software licensing, security management, business continuity services and communications provisioning,” said Iomart.

The acquisition provides Iomart with deep industry expertise and a highly capable team with a strong reputation within the legal sector.

“The addition of the new customer base when combined with Iomart’s existing legal customers consolidates Iomart’s position in a key sector.  

For the year ended 31 August 2023, Accesspoint generated revenues of £3.8m and adjusted EBITDA of £0.8m (unaudited). The acquisition is not considered a substantial transaction as defined in AIM Rule 12.”

The vendors of Accesspoint comprise solely the existing directors — Richard Roebuck, Victor van Der Poel and Gary Shaw.

Iomart CEO Lucy Dimes said: “The flow of sensitive data and drive to adopt technology to provide enhanced customer service within the legal sector means that data management, security and data sovereignty are all pressing considerations for legal firms and ones in which Iomart and Accesspoint excel.

“We are delighted to welcome Accesspoint’s growing list of customers into the Iomart group and excited to be working with the full team to further advance Iomart’s differentiation in this sector and positively contribute to the group’s overall organic growth plans.”

On its first-half results, Iomart said the recent acquisitions of Concepta and Extrinsica provided £6 million of additional revenue in the period.

The firm said cloud managed services revenue, the largest component of the group, increased 27% to £37 million from a combination of modest organic growth, price adjustments from last year’s energy cost increases, plus approximately £4.3 million contribution from the latest two acquisitions.

Interim dividend is unchanged at 1.94p.

Dimes said: “I’m pleased to report on another period of progress at Iomart.

“We continue to build on our existing strong foundations as a well-established and trusted service provider within the private cloud space, at the same time as extending our service offering across the wider and higher growth hybrid cloud market.

We see great opportunity ahead.

“For the UK to thrive as an economic powerhouse, its businesses will need to increase efficiency, operate at pace and adapt — leveraging cloud, data and digital technologies.

“Our blend of both IT and connectivity skills combined with our secure, scalable, resilient cloud and network infrastructure uniquely positions us to support the ambitions of our customer base, giving us confidence in our ability to participate successfully in the growing cloud sector.”