Liverpool-based digital agency Switch Media supplies domain names and shared hosting services to small businesses. In December the company reported a turnover of £1.3 million.
Under the terms of the deal, an initial £1.025 million has been paid on completion by AIM-listed iomart, with an additional £225,000 payable by October and subject to certain performance criteria.
Angus MacSween, CEO of iomart, comments: ‘The acquisition of Switch Media is a further step in the achievement of iomart’s strategy of building a leading company in the UK.
‘Switch Media is an excellent complementary business to [iomart’s] Easyspace in the small company segment of the hosting services market and will enhance the growth of iomart through expansion of the Group’s customer base and to new clients.’
The acquisition is iomart’s first since November, when it paid £4.2m to acquire Titan Internet, a business which manages servers for SMEs and large corporates.