Cloud computing firm Iomart buys SystemsUp

Iomart operates eight data storage centres in various part of the UK

Glasgow-based cloud computing company Iomart has bought a consultancy in the sector for at least £9m.

SystemsUp operates out of London and advises clients on how best to use cloud computing.

The deal involves an initial £9m in cash, with the remainder based on performance over the year to March 2016. That could be worth between £1m and £3.5m.

SystemsUp is a partner to Google, Amazon Web Services and Microsoft.

In the year to March, it had revenue of £4m and doubled profits from the previous year, to £1.5m.

It is to retain its independence of Iomart as a provider of cloud storage capacity, meaning it can recommend to clients that they use the rival companies' services.

Angus MacSween, chief executive of Iomart, said: "The market for cloud computing is becoming incredibly complex and the demand for public cloud services is increasing at pace.

"With the acquisition of SystemsUp, Iomart has broadened its ability to engage at a strategic level and act as a trusted adviser on cloud strategy to organisations wanting to create the right blend of cloud services, both public and private, to fit their requirements."

The Glasgow firm will publish its annual results on Tuesday. In April, the firm announced it expected adjusted pre-tax profits for the year to March to be in the region of £16.6m.