Rapidhost gets Innovise as new ‘host’

(By Anthony Miller – Friday 24th July 2009 8:00am). Very much carrying the stamp of non-exec chairman and serial (parallel?) entrepreneur, Vin Murria, AIM-listed software and managed services player, Innovise (nee Contemporary Enterprises), has just completed its 11th (if I have counted them correctly) acquisition since its consolidation in 2002. This time the target was ‘leading’ web hosting company (‘leading’ as in £900k turnover and £100k operating profit), Bucks-based Rapidhost. Innovise will pay £800k in cash and (new) shares.

Hosting services appears to be a market ripe for consolidation. Back in May (see Iomart ‘hosts’ RapidSwitch) we told you about Iomart’s acquisition of Rapidswitch (they all seem to be ‘Rapid’, don’t’ they!). Iomart was loss-making on revenues of £12.6m (see Ufindus sale finds Iomart flush with cash). Innovise, on the other hand, made just under £1m PBT in the year to 30th Sept. ’08 on £8.3m revenues. Both of course pale besides hosting services ‘giant’ Telecity, with some £133m revenues and £20m PBT. Innovise has a market cap of around £16m vs Telecity’s £650m (!). Who’s turn next?