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Lloyds Bank backs iomart’s Hosting Strategy with £10M acquisition war chest

01/06/10

AIM-listed iomart Group plc, parent of iomart Hosting, has secured a £10 million credit facility from Lloyds Banking Group as it continues its strategy to grow its managed hosting business through a combination of organic growth and acquisition.
Angus MacSween, CEO of iomart Group plc, said: “Last year we disposed of a non-core business and used some of the cash to make the strategic acquisition of RapidSwitch. We stated at the time of the purchase that we expected the acquisition to be immediately earnings enhancing and this has proven to be the case.

“The market reaction to our goal of becoming the UK’s leading managed hosting and cloud computing services company has been very encouraging to date, and we are convinced that further acquisitions will accelerate both our growth and our profits.

“When the lack of availability of debt finance is a constant topic of debate in the corporate world, our agreement with Lloyds demonstrates the faith it has in both our business model and our ability to deliver.

“We are already in the enviable position of having a sufficiently strong balance sheet to fund our business plans, but this additional facility will ensure that we can strike quickly should the right opportunity present itself.”

The deal represents the latest development in a long-standing relationship with the bank.

For full details of the announcement please visit the iomart Group web site: http://www.iomart.com/news/010610

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