Redstation, a provider of servers who host thousands of websites and emails, has been acquired by iomart Group for £8.1 million.
The company, who own and operate two data centres and offices in Gosport, provide a range of services to around 3000 customers.
iomart Group are one of the UK's leading cloud companies. They have paid an initial £6.6 million as an initial consideration while a further £1.5 million will be paid to Redstation if they achieve certain profit targets till the end of March 2014.
Redstation was founded fifteen years ago by Lance Taylor and since 2008 has been running the company with business partner Peter Appleton.
Appleton has said, "The combination of Redstation and iomart Group will be a powerful force in the market."
More top news
Essex Police say pictures of boys undressing have been discovered in the home of a teacher who's been found dead.
Organisations are calling for the release of Chinese sky lanterns to be banned due to the risk they pose to wildlife and habitats.
Two kittens are looking for a new home after being dumped in a Hampshire car park.