Datacenter provider Iomart has brought Titan Internet for £4.2m..
Iomart based in Glasgow will pay £3.6m on completion of the deal and another £600,000 by April 2011.
Titan manages more than 1,000 servers on behalf of clients from small businesses to large corporations.
Angus McSween chief executive of Iomart, said: “The purchase of Titan Internet provides us with additional highly-skilled technical expertise.”
He added: “We announced back in June that the group intended to become the UK’s leader in the relatively-new cloud computing market, through a combination of organic growth and acquisition.”
Iomart hosting recently secured a £10 million credit facility from Lloyds Banking Group to help on its growth strategy.