Glasgow-based cloud computing company iomart Group has agreed to acquire the entire issued share capital of Concepta Capital. a holding company of a group of Yorkshire IT companies which includes the ORIIUM and Pavilion IT brands, for £10.5m.
ORIIUM is a channel only IT service provider specialising in data management solutions, and Pavilion IT is a provider of cloud and hybrid infrastructure solutions and support services.
Concepta had revenues of £10m and EBITDA or £1.6m for the year ended March 31, 2022 and the deal will strengthen iomart’s indirect route to market and expand their customer base.
Chris Kiaie, who established the ORIIUM business and formed the Concepta Group, will continue to lead the ORIIUM and Pavilion IT businesses as their CEO.
Reece Donovan, CEO of iomart Group plc, said: “We are delighted to welcome the Concepta team to iomart, marking the resumption of our M&A activity in line with our strategic plans.
“After careful assessment of the market, in Concepta we found a business and team that fits within our strategic growth plan by, extending the Group’s product, skills and capabilities, strengthening our direct and indirect routes to market, and complementing the Group’s strong financial model.
“ORIIUM has a long track record and strong reputation across the indirect channel which allows us to broaden our reach whilst enhancing our expertise within the data management service layer.
“Pavilion IT provides a new and diverse customer base adding scale, technology and geographical coverage to our existing infrastructure reselling and support activities. This is a meaningful step as we position the Group for its next phase of growth as a leading secure hybrid cloud business.”
Chris Kiaie, CEO of Concepta, said: “Joining iomart marks the beginning of the next phase of growth for Concepta, and is a very exciting time for our highly skilled, experienced and ambitious team. It allows us to leverage joint capabilities, capitalise on our understanding of the markets we operate in and build upon the significant achievements to date.
“Identifying a business that shares our culture, goals and aspirations was incredibly important, and iomart’s commitment to exceptional customer service, team wellbeing and personal development represents our values perfectly. The team and I are all incredibly excited to be working as part of the wider group and look forward to being part of iomart’s incredible ongoing success.”
ORIIUM, established in 2007, is a channel-only organisation working with value added resellers and managed service providers to deliver best in class data and application management solutions to end users.
With this acquisition, iomart gains an independent wholesale operation that understands the UK IT channel deeply and has built trust through long-standing strategic partner relationships.
Sage Group reports good growth for first nine months of the year
Data management is a core element of the Group’s hybrid cloud proposition, and ORIIUM materially strengthens iomart’s indirect sales channel capabilities, while extending the Group’s product and technical skills and capabilities, with an additional 45 technical engineers joining the Group.
Concepta acquired Pavilion IT, a business established for over 30 years, in 2018 and in 2021 acquired P2 Technologies, a business focussed on the legal and accounting professional services sector to add vertical specialisation.
This created a strong direct sales organisation with over 250 customers under one unified operational delivery team offering a range of hybrid and cloud infrastructure technology solutions plus professional services and on-going customer support arrangements. This customer base will have access to iomart’s hybrid cloud solutions and services.
Completion of the acquisition is subject to written confirmation from the Department for Business, Energy & Industrial Strategy.