AIM News:Switch Media bought for £1.25m

AIM-listed Iomart has bought domain name and hosting company Switch Media for £1.25 million.

The acquisition secures more than 10,000 customers for the Glasgow-based firm.

Clients who have used Switch include Samsung, Harley Davidson, Wella and Wagamama. The firm, which was set up in 2002, is also an approved supplier of new media to the BBC.

Chris Evans, who will remain managing director of Switch, said the move was "very positive" despite the closure of its Liverpool offices.

It is yet to be seen what will happen to its 14 staff, who are currently in TUPE talks. The exact number of jobs affected by the takeover will not be known until the end of May.

Some directors have already left Switch, with personnel from Iomart taking their place.

Mr Evans said: "This is a very positive move for us. It allows Switch Media access to Iomart's wholly-owned data centres and its full range of cloud computing services, enabling us to offer our customers a wider range of services."