IT firms seal Trans-Pennine merger

TWO IT businesses on different sides of the Pennines have merged in a “six figure” deal  to create a converged cloud provider.

Manchester-based EveryCloud is combining with Brighouse firm Vapour Media and will trade under the Vapour Media brand, creating a 30-strong tea, with a turnover of £1m.

Both organisations target the SME market. EveryCloud provides cloud services through a white label proposition, focusing on hosted servers, backup and storage.

Additional investment funds have been raised to support the development of the combined business. Both companies were advised by Manchester-based small company investment specialist Acceleris Capital.

Tim Mercer of Vapour Media, said: “In the business environment there is the opportunity for a connectivity-driven revolution that enables business growth and improvement through cloud services. This market is incredibly fragmented and for resellers there is no single ‘go to’ partner.

“Traditional IT companies, telcos and cloud start-ups are offering a bewildering array of solutions to embrace this. These worlds are colliding and SMEs are stuck in the middle.

“There is a place for a new breed of provider, marking a move away from telcos dabbling in computing or IT businesses dabbling in comms. There is a requirement for an integrated cloud provider that can credibly provide an all-in-one offering.”

Steve Dempsey of EveryCloud, said: “Our customers who are taking backup and data storage services are increasingly looking to upgrade their connectivity and they are also likely candidates for phone and voice services too.

Norman Molyneux, founder of Acceleris Capital  added: “This is a powerful merger as the technologies of the two companies are industry leading and clearly very complementary.

“Since co-founding EveryCloud 18 months ago, we have grown the business with private investment from individuals with relevant experience in the sector. We are delighted to have secured this deal with the further backing of private investment to secure a transaction that should benefit all parties.”