Managed data services provider targets top five hosting and cloud provider position in the UK this year following purchases of Firstserv and Serverstream
Six Degrees Group is aiming to become one of the top five hosting and cloud providers in the UK this year following the acquisitions of Firstserv and Serverstream.
Both companies will be integrated into Six Degrees Group’s managed data division, adding £3 million of hosting revenues. The acquisitions also see 17 staff join Six Degrees Group, where they will focus on integrating and expanding the Group’s hosting platforms.
Fistserv and Serverstream focus exclusively on the hosting market with an emphasis on the digital media, publishing and leisure sectors. Customers include Sunseeker, The Spectator and Port of London Authority.
As a result of these transactions, Six Degrees Group’s run-rate revenues now exceed £40 million with underlying EBITDA of over £10 million. The company said it continues to enjoy strong double-digit organic growth, underpinned by cross-selling.
Six Degrees Group CEO Alastair Mills secured around £60 million of funding from capital funding private equity group Penta Capital when the company was first launched last September.
Six Degrees Group received an additional £25 million worth of funding from Clydesdale Bank in February to support its strategy of organic and acquisitive growth in the managed data services market.
Mills said: “This announcement sees the Group continue to focus on managed data services, particularly in the fast-growing cloud hosting sector. Our goal for 2012 is to become one of the top five hosting and cloud providers in the UK.”
Firstserv managing director Gordon Kenneway said: “Our employees will now have access to a larger, geographically diverse hosting platform with best-in-class compute and storage resources, which is also a very exciting step for our customers.”
Serverstream managing director Jonathan Obadia said: “Serverstream has a strong reputation for delivering complex hosting solutions to mid-market customers and this merger enables us to continue our expansion with additional services, scale and geographical diversity.”