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Dedicated Server, Managed Services and Colocation Services Provider Redstation Bought for US$12.4 Million

September 06, 2013
by Staff Writer

Dedicated server, managed services and colocation services provider Redstation has been bought for £8.1 million (US$12.4 million). The company was acquired by UK cloud company iomart Group. A "contingent consideration" of up to £1.5 million (US$2.35 million) based on whether Redstation can achieve agreed profit targets in the period to end March 2014 might also be paid as part of the deal.

Established 15 years ago, Redstation has an income of £5.2 million (US$8.3 million) and has two data centers and offices in Gosport, Hampshire, United Kingdom. The company employs 33 staff and offers a broad range of hosting services. It caters to a customer base of about 3.000 individuals and companies.

iomart Group has a data center in Maidenhead, United Kingdon and owns a number of brands, including dedicated server company RapidSwitch - one of the UK's leading providers. iomart Group's acquisition of Redstation means the company now has 20,000 servers and 10 data centers.

"The addition of Redstation will consolidate our position as the leading player in the dedicated server market in the UK," explained iomart Group plc's CEO, Angus MacSween. "Redstation’s customers deliver a wide variety of cloud applications and services so this acquisition further underpins iomart’s position as the main provider of the complex infrastructure required by UK businesses to support the cloud environment.”

“Redstation has grown to the point where we need to move to the next level, so becoming part of the leading cloud company in the UK makes perfect sense," added Redstation's Managing Director, Martin Groom. "As part of the wider iomart Group we will have access to greater resources and technical innovation and will be able to offer an even wider range of cloud services to our ever growing customer base.”

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