The first signs of consolidation in the Scottish internet business community have occurred with the acquisition by iomart Group plc of Edinburgh e-commerce solutions firm, NSL (Internet) Ltd.
iomart (www.iomart.com), the Glasgow-based integrated telecommunications and internet services company, announced the deal today (Thursday).
The buy out of the Edinburgh firm strengthens iomart's web hosting activities and fits in well with the new point of presence being established in the Scottish capital by iomart for the roll out of its ADSL service.
Chief Executive of iomart Group plc, Angus MacSween said: "NSL will significantly enhance iomart's capabilities in web hosting and co-location. They have an excellent team of people with strong technical skills. Iomart is rapidly establishing itself as one of the key players in the delivery of broadband internet access using ADSL technology and NSL's services fit naturally as an added value service to iomart's growing business-oriented customer base."
NSL (Internet) Ltd, which specialises in web hosting, co-location and domain name registration, has been trading since 1996, working with a variety of business and public sector customers. The company currently employs 27 people.
Based on the unaudited accounts of NSL for the 12 months ended March 31, 2000, revenues were £298,000 and the loss before tax was £323,000. Net liabilities at that date amounted to £138,000. During its current financial year, NSL has experienced substantial growth in revenues but also invested significantly in its infrastructure, with particular emphasis on appropriately qualified staff, which has resulted in increased losses.
Earlier this month, iomart announced it had won the right to install its own DSL (Digital Subscriber Line) equipment in an initial 20 BT local exchanges when unbundling of the local loop, the 'last mile' of copper phone wire, takes place early next year.
In a separate development, the company also launched unmetered access on its lifestyle consumer ISP, Madasafish (www.madasafish.com).