Acquisition of Accesspoint Technologies

Acquisition of a leading IT hosting partner focused on the legal sector

iomart Group plc (AIM: IOM), the cloud computing company, is pleased to announce that it has agreed to acquire the entire issued share capital of Accesspoint Group Holdings Limited (“Accesspoint”), the holding company of Accesspoint Technologies Limited (the “Acquisition”).

Based in North East London, Accesspoint is an IT hosting partner focused on the UK legal industry since 2009. Accesspoint provides a suite of managed and hosted services including infrastructure hosting, software licensing, security management, business continuity services and communications provisioning.

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.

Consideration

The initial consideration for the Acquisition is £4.5m paid in cash on completion on a debt and cash free basis, with a potential further £0.5m in cash payable on the achievement of certain post-acquisition milestones. The Acquisition also includes up to a further £1.4m contingent earn-out payment based on the profitability of Accesspoint for the 12 months ending 31 August 2024.

The initial consideration will be financed through a combination of existing bank facilities and cash on the Company’s balance sheet.

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

Lucy Dimes, CEO of iomart Group plc, commented:

“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.”