Cloudy vendor Iomart Group is acquiring Microsoft Azure cloud solutions provider Extrinsica for £4 million.
This move will give the Glasgow-based Iomart a team of 33 based in the UK, customer references, and UK growth plan.
Extrinsica CEO Simon Smith will continue to lead the business as CEO.
“Joining Iomart marks an exciting phase for our highly skilled, experienced and ambitious team, providing us with a strengthened platform for growth. It allows us to use joint capabilities, capitalise on our understanding of the markets we operate in and build upon our significant achievements.
“Iomart has a long pedigree in cloud infrastructure, an impressive customer base and a growth strategy which I believe positions Iomart well for future success.”
The Oxford-based Microsoft Azure partner offers managed Azure Cloud, Azure solution design and implementation services, support and optimisation services and licencing.
In 2010, Extrinsica was incorporated as a cloud services provider to micro businesses. In 2017 it was invited by Microsoft to become one of the first 25 Microsoft Azure CSP partners worldwide.
Iomart revealed that the initial consideration for the acquisition is £4 million, with a potential further £0.3 million in cash payable on the achievement of certain key customer targets during the calendar year.
Iomart CEO Reece Donovan said: “We are delighted to welcome the Extrinsica team to Iomart, providing a large step forward in Iomart’s capabilities to support existing and new customers in their use of Microsoft’s Azure cloud platform.”
“Smith and the team have been at the forefront of the market developments of Azure since 2017 and have deep skills and expertise in this in-demand area of cloud computing, which will accelerate the initial investments we have made in our own Microsoft resources and capabilities.
“This is a meaningful step in our strategy as we position the Group for its next phase of growth as a leading secure hybrid cloud business.”
