JSE-listed document management specialist Metrofile said on Thursday that it has agreed to buy 70% IronTree Internet Services from the founding shareholders, with the remaining tranche to be bought in 2024.
The total consideration for 100% of the company will be between R80-million and R140-million, Metrofile said in a statement to shareholders.
IronTree provides data management services including cloud backup, disaster recovery and specialised server hosting in a private cloud. It also offers cybercrime and ransomware prevention, privacy law compliance management and business continuity planning services.
“This acquisition complements Metrofile’s strategic pillar of accelerating its position into the provision of information management and digital services. It will benefit Metrofile’s clients who are increasingly managing their information digitally and will provide them with digital backup and hosting services that support their businesses,” Metrofile said.
“IronTree will strengthen Metrofile’s core capabilities in virtual storage and digital risk management. IronTree will also provide access to products in high-growth segments such as cybersecurity and digital compliance.”
The sellers have agreed a restraint of trade for a period of five years from the effective date of the second payment in 2024.
In the year ended 28 February 2021, IronTree reported revenue of R45.3-million, profit after tax of R6.7-million and net assets of R4.3-million. – © 2021 NewsCentral Media