Backup Technology gets new owner following £23m agreement

Leeds-based Backup Technology (BTL) has been acquired by Glasgow-based iomart, one of the UK’s biggest providers of cloud computing services.

BTL has a portfolio of 200 clients. Apart from Liverpool and Everton, the client list also includes Siemens, British Red Cross, Lloyds Register, Suzuki and Pernod Ricard.

Established in 2005, BTL has 16 staff and it achieved a turnover of £5.2m in the year to the end of December 2012.

Angus MacSween, chief executive of iomart group, said yesterday: “We are delighted to welcome BTL to the group as they have achieved ground-breaking progress in the delivery of cloud backup and disaster recovery, and have been on our radar for some time.”

The cash consideration for BTL has been financed by a £35m debt package from Bank of Scotland made up of a £15m term loan and £20m revolving credit facility. Before the sale, the company’s entire shareholding was owned by the co-founders, Ritchie Fiddes and Simon Chappell.

Mr Chappell, who is leaving to pursue new opportunities, said: “This is a really exciting moment for BTL.

“We very much admire what Angus and his team have done in establishing iomart as the leading player in the market for cloud services in the UK and can see that our backup expertise and services are a great fit. iomart will be a great home for BTL.”

Mr Fiddes, who continues as sales and service director, added: “As the growth of cloud services continues to gain momentum, iomart group provides a perfect fit for BTL to be able to offer its customers additional complementary services.”

Mr Fiddes confirmed that the BTL brand would be retained, and the deal would bring more career opportunities for BTL’s staff.

He added: “It’s nice to have some positive news in the current climate.”

BTL is iomart group’s second acquisition of 2013.

At the start of September, iomart bought Redstation, a provider of dedicated servers and managed services in Hamp- shire.

BTL was advised by Livingstone Partners, and Pinsent Masons. Iomart was advised by Shepherd and Wedderburn.