UK: Notts Internet Company Acquired By Plc.

WebFusion Internet Solutions Ltd, a dedicated internet services company, has been acquired by Magic Moments Internet PLC in a £40 million deal.

The company, which is based in Nottingham, is the brainchild of brothers Jonathan Brealey and Tim Beresford-Brealey. The company started in 1997 and incorporated in 1999. It has quickly set itself up to become the UK's largest web hosting company with over 15,000 accounts, which comprise mainly small and medium sized enterprises. The company recently invested over £1 million in setting up a UK Data Centre.

AIM-listed Magic Moments's strategy is to maximise value for shareholders by establishing a leading European position in the rapidly growing market for the provision of internet hosting and e-commerce solutions to small and medium sized enterprises. The acquisition of WebFusion Internet Solutions Ltd will drive this strategy forward. The co-founders of WebFusion will be appointed board directors to the enlarged Group.

Jonathan Brealey, managing director of WebFusion Internet Solutions Ltd, said: "Having developed a profitable business, this deal will enable both companies to maximise further growth potential. It will also create significant technical and operational synergies for the businesses."

WebFusion Internet Solutions Ltd was advised Andrew Wall and John Garner from KPMG Corporate Finance and Stephen Kitts and David Kaplan from legal advisors Eversheds.

Andrew Wall, Partner in KPMG Corporate Finance said: "Following the volatility in hi-tech markets, investors are focusing on those internet businesses with a proven track record in performance and capability. The smart money should be on investors, like WebFusion, which has significant prospects for growth."

He added: "There is a natural fit between the two businesses which should enable them to become the pre-eminent web-hosting service."

Stephen Kitts at Eversheds said: "The deal structure was innovative and demonstrates how value can be leveraged in the hi-tech business arena. The future of the new Group will be exciting for all concerned, particularly Tim and Jonathan."

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