Cloud computing specialist iomart Group has agreed to buy Concepta Capital as the Glasgow-based firm returns to the acquisition trail to boost growth.

The deal involves an initial cash consideration of £10.5 million with a further £4m dependent on future performance. This will be funded through a combination of iomart's existing bank facilities and cash on the company's balance sheet.

Concepta Capital is a holding company for Oriium and Pavilion IT brands. The group generated revenues of approximately £10m during the year to March 31, with earnings of circa £1.6m prior to exceptional items.

Oriium is a channel-only IT service provider specialising in data management solutions, and Pavilion IT provides cloud and hybrid infrastructure solutions and support services.

READ MORE: Glasgow's iomart eyes up takeover targets to spur growth

Majority shareholder Chris Kiaie, who established the Oriium business and formed the Concepta group, will continue to lead the businesses as chief executive. 

"We are delighted to welcome the Concepta team to iomart, marking the resumption of our M&A activity in line with our strategic plans," iomart chief executive Reece Donovan said.

"After careful assessment of the market, in Concepta we found a business and team that fits within our strategic growth plan by extending the group's product, skills and capabilities, strengthening our direct and indirect routes to market, and complementing the group's strong financial model."

Completion of the deal is subject to written confirmation from the Department for Business, Energy & Industrial Strategy in accordance with the National Security and Investment Act 2021. This clearance is required as Oriium provides data management services to UK government bodies.