Computing services company Iomart has announced it is buying rival Titan Internet for £4.2m. The acquisition is in line with Iomart's declaration in June that the company intended to become the UK leader in the cloud computing market.

Jon Gill, a solicitor specialising in technology M&A at international law firm Eversheds comments “Cloud computing is the latest stage in the movement from IT products to services and is recognised across the sector as being something of a revolution. With analyst IDC forecasting global revenues from cloud-related IT services to rise from $17.4bn in 2009 to $44.2bn in 2013, the financial attraction is clear and the big name vendors, small start-ups and venture capital investors have all been seeking to establish a presence.

“The Iomart transaction stands out as a good example of a corporate looking to consolidate its presence in this market, whereas a good proportion of cloud-related deal-to-deals, particularly in the US, have been venture capital investments attracting some very high valuations. We can expect to see further consolidation as those who were late to recognise the potential of cloud technology seek to build a presence in this fast growing area. As further testament to this trend, Eversheds is assisting a noticeably larger number of customers on their procurement of cloud solutions compared with quarter two in the last financial year, and has assisted more cloud vendors in 2010 than in previous years.”