ServerSpace acquired by cloud computing firm for £4.25m

Tech company ServerSpace, which was established by Dublin-born entrepreneur Tim Pat Dufficy, has been acquired by Scottish cloud computing company iomart for £4.25 million (€5.4 million).

ServerSpace, whose clients include the Jurys Inns hotel group and Car Shop, the UK's leading car supermarket group, provides cloud and managed hosting as well as co-location and connectivity.

It was named by Deloitte as one of the fastest growing tech companies in the UK in 2012 and 2013.

Its customers include the Jurys Inns hotel group and Car Shop, the UK’s leading car supermarket group.

“The hosting market is hugely competitive and one of the problems we’ve had is that although we’ve got the expertise and know-how, we’ve often been beaten to the bigger deals because we’re small. Having the weight of a big and impressive parent company like iomart behind us will give us a much better chance of winning those deals,” Mr Dufficy

Its acquisition was part of the announcement by AIM-listed iomart of its half-year results to the London Stock Exchange.

ServerSpace currently rents data centre space to provide its services so iomart has the opportunity to eliminate most of that cost by integrating ServerSpace and its customers’ equipment into its own network of UK data centres.

Iomart chief executive Angus MacSween said: “ServerSpace is a company with strong sales growth and will be a good acquisition for the group.”

Mr Dufficy will be staying with ServerSpace under the new arrangements.