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Iomart Group PLC - Glasgow-based cloud computing - Agrees to buy Extrinsica Global Holdings Ltd for an initial £4.0 million in cash and shares, with up to £300,000 more in cash payable in 2023 on agreed targets. A further £4.0 million to £7.0 million earn-out in cash and shares is due based on Extrinsica’s financial 2024 profit. Of the initial payment, £2.0 million will be satisfied by the issue of about 1.6 million new shares in Iomart at £1.28 each.
Extrinsica is a Microsoft Azure Cloud solution services provider with offerings including managed Azure Cloud, Azure solution design and implementation services, support & optimisation services and licencing. For the financial year that ended on March 31, Extrinsica produced revenue of £7.4 million, up 40% on the year before, and earnings before interest, tax, depreciation and amortisation of £100,000.
Iomart says the acquisition of Microsoft Azure expertise and experience aligns with its secure hybrid cloud strategy.
Current stock price: 172.80 pence each, up 3.5% on Monday morning in London
12-month change: down 7.1%
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