4th August 2022
iomart acquires Concepta Capital
AIM-listed cloud computing company iomart Group has agreed to acquire the entire issued share capital of Concepta Capital for an initial cash consideration of £10.5m.
Concepta Capital is a holding company of a group of companies that includes ORIIUM and Pavilion IT.
Leeds-based ORIIUM, established in 2007, works with value-added resellers and managed service providers to provide data and application management services to end users.
It is expected to strengthen iomart’s indirect sales channel capabilities, while extending the group’s product and technical skills and capabilities, with an additional 45 technical engineers joining the group.
Concepta acquired Sheffield-based Pavilion IT, which has been established for more than 30 years, in 2018 and in 2021 acquired P2 Technologies, a business focused on the legal and accounting professional services sector to add vertical specialisation.
This created a strong direct sales organisation with more than 250 customers under a single team offering a range of hybrid and cloud infrastructure technology services plus professional services and on-going customer support arrangements.
Concepta had revenues of about £10m and EBITDA (pre-exceptional items) of about £1.6m for the year ended 31 March 2022.
Chris Kiaie, who established the ORIIUM business and formed the Concepta Group, will continue to lead the ORIIUM and Pavilion IT businesses as chief executive, supported by his experienced team.
iomart will pay an initial cash consideration on completion of £10.5m, subject to potential completion accounts adjustments. A deferred contingent cash consideration of up to £4m will be payable dependent on the future profit performance.
Reece Donovan, chief executive at iomart Group plc, 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.”
Chris Kiaie, chief executive at Concepta, 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.”
The shareholders of Concepta were advised by Paul Herriott and Matthew Spence from Dow Schofield Watts Corporate Finance and Brabners (legal). iomart Group is advised by Peel Hunt (nominated adviser and joint broker) and Investec Bank (joint broker).