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HostEurope makes bid for Iomart

Wed, 30th July 2014, 14:23

This past May, UK based web hosting specialist Iomart Hosting announced overall revenues had grown by 29% to reach £55.6m, with revenues from Iomart’s hosting segment growing by 40% to £44.7m.  Iomart is now confirming that it has rejected two cash takeover offers from Host Europe. Iomart said it had received cash offers on 13 June and 27 June of 275p and 285p per Iomart share, respectively.

Iomart Hosting growth has been fueled by a number of webhosting company acquisitions over the years including ServerloveRapidSwitchEasyspaceTitan InternetMelbourne Server Hosting and RedStation. The Glasgow-based firm says its directors concluded that both offers undervalued the company.

Host Europe offer domain registration, application hosting, cloud hosting and managed hosting through their own long list of brands that includes 123-regHeart InternetHost EuropeWebfusion, Domainmonster, RedCoruna, Domainbox, Donhost, and Brand Fortress.

In a statement, Host Europe has confirmed that it had approached the web hosting firm regarding a possible cash offer of 285p per share. Host Europe has until 21 August to announce a firm intention to make an offer for Iomart, or walk away. While the deal would not make HostEurope the largest webhost, the company would certainly rival Endurance International Group (EIG) for number of hosting brands.  

Iomart currently has eight data storage centres in the UK, including Glasgow, London, Manchester and Nottingham and currently uses various brands to deliver their hosting services.  Iomart's share price was up 10.53% to 259.75 with the news.

Clients of  Iomart and its hosting brands can share their thoughts on the possibility of a new master in the form of a web hosting review here.

 

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