Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!


Dediserve acquired by Iomart Group plc
New on LowEndTalk? Please Register and read our Community Rules.

Dediserve acquired by Iomart Group plc

https://www.thetimes.co.uk/edition/ireland/dediserve-duo-on-cloud-nine-with-scottish-deal-hqgch05x3

Dediserve, a Dublin company specialising in cloud computer services, has been bought for €7.9m cash by Iomart Group, a Scottish IT provider that is listed on the junior market in London.

The deal is a windfall for Dediserve director Stephen McCarron, who owned 70% of the business, and managing director Aidan McCarron, who had 30%. Stephen McCarron previously set up Hosting365, which was bought by US firm SunGard in 2010.

Iomart, which is valued at £330m (€375m) on the Alternative Investment Market, said: “There are no plans for change [at Dediserve] other than continued investment and growth in the company and the team.”

Dediserve provides cloud hosting in 10 locations around the world and has more than 1,500 customers. The company made nearly €300,000 profit…

Congrats to @dediserve ;)

«1

Comments

  • On mobile, it shows €7 before breaking to a new line. I was like... wtf?

    Comes out I'm just missing some sleep

    Thanked by 2dediserve netomx
  • The company made nearly €300,000 profit…

    Like, in total or per year?

    7.900.000€ ...whew, not bad. Congratz :o

    Thanked by 1dediserve
  • dediservedediserve Member, Provider

    Thanks guys.

    Thanked by 2Yura Ympker
  • FaiziFaizi Member

    @dediserve said:
    Thanks guys.

    So what's your next project?

  • dediservedediserve Member, Provider

    @Faizi said:

    @dediserve said:
    Thanks guys.

    So what's your next project?

    Business as usual. The additional reach and scale Iomart brings is hugely exciting. We've great plans on new services, hybrids, dedicated cloud servers and new locations!

  • @dediserve, any pricing changes expected for current customers?

    Thanked by 1vimalware
  • TomTom Member

    Congrats @dediserve!

  • dediservedediserve Member, Provider

    @serverian said:
    @dediserve, any pricing changes expected for current customers?

    Not a thing. Business as usual.

  • @dediserve You are staying with the company right?

  • dediservedediserve Member, Provider

    @TheOnlyDK said:
    @dediserve You are staying with the company right?

    No change :)

    Thanked by 2TheOnlyDK vimalware
  • MikePTMikePT Member, Provider

    @dediserve said:

    @TheOnlyDK said:
    @dediserve You are staying with the company right?

    No change :)

    Congratulations. Looks like you done it right. :)

  • AnthonySmithAnthonySmith Member
    edited July 2017

    Wow, nice one.

    image

    Just don't allow any iomart support staff to communicate with the current customer set in any way shape or form and you will have many happy years ahead :)

    I am no longer active here, find me at https://talk.lowendspirit.com

  • InfinityInfinity Member, Provider

    @dediserve said:
    Business as usual. The additional reach and scale Iomart brings is hugely exciting. We've great plans on new services, hybrids, dedicated cloud servers and new locations!

    I'm not sure that's how an iomart takeover usually works out - it's more like they'll migrate to their existing locations eventually and phase out any others. I've been a long term customer of a company which was taken over by iomart, the service it self is not bad, but there's no chance they'll leave Dediserve running as it is for very long.

    Most of the staff from that brand ended up leaving shortly after the takeover citing the company culture etc.

  • dediservedediserve Member, Provider

    Nothing is changing at dediserve. Same team same support team same locations. Just more of what works :) you can't fix what's not broke :)

    Thanked by 1dwtbf
  • randvegetarandvegeta Member, Provider

    7.9M for only 300k /yr in profit? that would take more than 25 years to repay. How much capital did you include?

    Thanked by 1leapswitch
  • DigitalFyreDigitalFyre Member, Provider

    randvegeta said: 7.9M for only 300k /yr in profit? that would take more than 25 years to repay. How much capital did you include?

    The profit is not the only thing that counts here. There's millions worth of hardware too :P

  • jvnadrjvnadr Member

    randvegeta said: 7.9M for only 300k /yr in profit? that would take more than 25 years to repay. How much capital did you include?

    In such cases, profit logistically is what a company earns after the margin that has been set for expenses and depreciation of equipment purchase. So, if a company has bought 2M$ of equipment and the plan is to include as payment for this equipment (loans, investors) in 10 years with some interest, let's say 10%, then expenses are 2,2M$ / 10 years, 220K$ per year. If the other expenses (salaries, electricity etc.) are, let's say, 200K$ per year, then, the yearly cost of operation of the company will be 420K$ per year. If the income is 600K$/year, the yearly profit is 180K$ but the worth if the company is not that: it is the income for several years, the owned gear, the economic forecasts, profit forecasts and the margin for further development.

    Thanked by 1netomx
  • WilliamWilliam Member, Provider

    dediserve said: you can't fix what's not broke :)

    I see you do not know the IOMart history. They can and try to fix perfectly working things, gloriously fail and then just continue like nothing....

    DigitalFyre said: There's millions worth of hardware too :P

    A company with 1500 VM customers does not have millions worth in hardware; the entire dediserve IP space is not enough to address millions worth of hardware alone...

  • jvnadrjvnadr Member
    edited July 2017

    William said: A company with 1500 VM customers does not have millions worth in hardware; the entire dediserve IP space is not enough to address millions worth of hardware alone...

    In this case, probably is not the hardware that raised the price. It has to be the platform itself, the growth per year and per month, any innovation to the cloud field (how to deploy vms, gui friendly for developers etc.), investments that has been given to dediserve, forecasts and, of course, the bought equipment and the setup cost (human resources for it etc.).
    IOMart people are not dumb to spend this kind of money if all that were there is 1500 clients of vps...

  • Newsletter in code format hurt my eyes!

    To The Moon!

  • randvegetarandvegeta Member, Provider

    @jvnadr said:

    William said: A company with 1500 VM customers does not have millions worth in hardware; the entire dediserve IP space is not enough to address millions worth of hardware alone...

    In this case, probably is not the hardware that raised the price. It has to be the platform itself, the growth per year and per month, any innovation to the cloud field (how to deploy vms, gui friendly for developers etc.), investments that has been given to dediserve, forecasts and, of course, the bought equipment and the setup cost (human resources for it etc.).
    IOMart people are not dumb to spend this kind of money if all that were there is 1500 clients of vps...

    300k / yr is not alot by any means. So for a valuation of 26x annual earnings it's got to be capital (be it hardware, property or tech). But 7.9M is no small sum. Hard to imagine that Dediserv have 7.9M worth of Cloud Tech.. That kindof money can hire a decent team of developers.

  • WilliamWilliam Member, Provider

    300k profit, which could be turnover of, well, 300k to infinity - x26 is high, x10-x12 is more standard at least from both what i sold and what i've seen offered and accepted at (former) jobs.

    randvegeta said: But 7.9M is no small sum

    For tech acquiral it is actually, just look at the prices non-profitable startups sell in US or even EU....

  • jvnadrjvnadr Member
    edited July 2017

    randvegeta said: 300k / yr is not alot by any means

    The opposite. It is a big profit, most of new companies will continue in loss for many years in their annual balance sheet, until they gain their first profits.
    Don't confuse logistic profits with what an employee or an one-man-show company do think as profit/income/expenses with that financial specs of a real company are.
    So, 300K for the year, is more than enough for a startup and a positive balance for any company (DO is still working at loss, but with great margins of evolve and growth that give a huge stock market and investing value).

    Thanked by 1netomx
  • randvegetarandvegeta Member, Provider

    @William said:
    300k profit, which could be turnover of, well, 300k to infinity - x26 is high, x10-x12 is more standard at least from both what i sold and what i've seen offered and accepted at (former) jobs.

    randvegeta said: But 7.9M is no small sum

    For tech acquiral it is actually, just look at the prices non-profitable startups sell in US or even EU....

    If someone offered me 10x my turnover, ide probably accept. And I have property in HK.. which is expensive as hell!

  • YuraYura Member

    Can't login!

    Someone changed phpMyAdmin password again...

    Thanked by 1Junkless
  • OnApp_TerryOnApp_Terry Member, Provider
    edited July 2017

    @jvnadr said:

    randvegeta said: 300k / yr is not alot by any means

    The opposite. It is a big profit, most of new companies will continue in loss for many years in their annual balance sheet, until they gain their first profits.
    Don't confuse logistic profits with what an employee or an one-man-show company do think as profit/income/expenses with that financial specs of a real company are.
    So, 300K for the year, is more than enough for a startup and a positive balance for any company (DO is still working at loss, but with great margins of evolve and growth that give a huge stock market and investing value).

    +1 - this is why EBITDA is a better metric when doing acquisitions.

    Congrats @dediserve :)

    Thanked by 1dediserve

    OnApp + CDN.net
    [email protected]

  • randvegetarandvegeta Member, Provider

    @jvnadr said:

    randvegeta said: 300k / yr is not alot by any means

    The opposite. It is a big profit, most of new companies will continue in loss for many years in their annual balance sheet, until they gain their first profits.
    Don't confuse logistic profits with what an employee or an one-man-show company do think as profit/income/expenses with that financial specs of a real company are.
    So, 300K for the year, is more than enough for a startup and a positive balance for any company (DO is still working at loss, but with great margins of evolve and growth that give a huge stock market and investing value).

    Well of course without knowing the full picture, it is difficult to know where the valuation comes from. But generally speaking, 300k profit is not much. Perhaps turnover is massive and and the profit is even irrelevant. But I cannot agree that it is 'huge'. Relatively speaking, it is tiny ( if not irrelevant ).

  • WHTWHT Member

    From LET to 7.3 million, well done!

    Thanked by 1netomx
  • WilliamWilliam Member, Provider

    jvnadr said: Don't confuse logistic profits with what an employee or an one-man-show company do think as profit/income/expenses with that financial specs of a real company are.

    Keep in mind that Dediserve was/is a simple LTD with only a few people as well though, not a major corp with own financial+legal dept.

Sign In or Register to comment.