York hosting company Bytemark sold to AIM-listed cloud computing company iomart
Bytemark, which was founded in 2002 by Matthew Bloch and Peter Taphouse, offers IT hosting and dedicated server and cloud storage services. Alongside its York headquarters, the company also has a 5,500 sq ft data centre in the city.
The company was advised on the successful deal by members of the corporate finance team from York and Leeds-based accountancy firm, Garbutt + Elliott, and the Leeds office of national law firm Mills & Reeve.
Garbutt + Elliott partner Tariq Javaid, who specialises in mergers and acquisitions within owner managed companies and SMEs, advised on the deal. Working closely with the seller Bytemark, Garbutt + Elliott helped identify a suitable buyer who would secure the future of the business, whilst also allowing the owners to fulfil their personal ambitions.
The buyer, iomart, offers managed hosting and managed cloud services on a global scale, working with an impressive client base comprising the likes of Virgin Media, Pernod Richard EMEA, and Stagecoach. Headquartered in Glasgow, Scotland, the company delivers its services through a network of data centres that it owns and operates in the UK and via 18 additional locations around the globe.
iomart is listed on the London Stock Exchange’s Alternative Investment Market (IOM: AIM). In the year to 31 March 2018, the company recorded a turnover of £97.7m.
Commenting on the deal, Bytemark managing director, Matthew Bloch, said, “Garbutt + Elliott shouldered a huge burden. They ran a sharp, competitive process and let us get on with
running Bytemark until the deal was done. Their meticulous approach ensured that both parties were pleased and that the process was as smooth as possible.”
Over the last financial year the practice has acted as lead financial advisor on 44 completed projects with deals worth £100m and has a further 30 currently in progress, across a variety of business sectors including manufacturing and engineering, printing, brewing, food, transport, healthcare, support services and technology.
Tariq Javaid, Partner at Garbutt + Elliott added, “The two parties represent two extremely complementary businesses which fit together very well. Both the buyers and the sellers have gained positively from the deal. iomart has certainly added a very successful and innovative company to its already extensive cloud hosting portfolio. Working on facilitating the sale and witnessing first-hand the positive outcomes that we helped achieve for all involved was a great pleasure. We wish the best for both businesses and their employees in the future.”
Paul Johnson, partner in the corporate team at Mills & Reeve said, “There are excellent synergies between the two companies. Bytemark will be a real value-add to iomart and the deal, which will see it become part of a UK and global leader in hosting, will ensure all the hard work that has gone into its development will continue long into the future.”
Garbutt + Elliott has 12 partners and advises businesses throughout Yorkshire across a range of sectors including manufacturing, food, digital tech and creative, construction, leisure and charities.
To find out more about our Corporate Finance team please contact us at firstname.lastname@example.org