The deal, funded through existing cash and banking facilities, is expected to significantly boost Iomart’s capabilities and offerings in the UK mid-market.

Atech, with 150 employees and numerous Microsoft certifications, brings a wealth of expertise in cloud solutions, managed security services, and digital transformation. Lucy Dimes, CEO of iomart, said the acquisition aligns with the firm’s “bigger, better, bolder” strategy and strengthens its position as a leading provider of secure cloud services.

She added: “Atech was a strategic target for us, and creates a powerful combination of Microsoft credentials, managed security services, high quality referenceable customer deployments, leading-edge technology and global delivery capability.

“This accelerates and plays directly into our vision to be the UK’s leading secure public, private and hybrid cloud services provider, marking the start of the next phase in the evolution of Iomart.”

Ryan Langley, CEO of Atech, said: “Both businesses share the same ambition, to be at the forefront of bringing the most in demand secure cloud offerings to our customers, enabling them to modernise their systems, harness the power of Microsoft AI capabilities, drive operational and process efficiencies, all with a secure by design approach.”