Adept Telecom Acquires Telecom Direct

Networking Services company Adept Telecom is acquiring Telecom Direct, one of the oldest independent fixed line telecom resellers in the UK, established in 1997. The acquisition follows the Company’s core strategy of acting as a consolidator of the highly fragmented fixed line business market. Telecom Direct represents a natural fit with Adept as it operates a very similar model and customer base and should immediately benefit from the introduction of Adept’s automated back office systems.

Telecom Direct currently provides voice telephone services to 5,500 business customers. In the year to 31 March 2007, Telecom Direct generated revenues of £13 million and profits before tax of £0.2 million. The acquisition will therefore increase Adept’s turnover by over 60% per annum, making the Company one of the largest fixed-line resellers in the UK.

The consideration payable by Adept is subject to performance criteria. We are currently estimating a total payment of £6.4 million, to be satisfied by a cash payment of £5 million on completion, £0.4 million payable six months following completion, and the balance of £1 million payable after 12 months. As the final amount paid is subject to future operational and financial criteria the actual amount may be more or less than this. The total consideration will be funded by a mixture of cash and bank debt.

Commenting on the acquisition, Roger Wilson, Chairman of Adpet, said, “This is a very significant transaction as it has immediately changed the scale of the business and led to our ability to reach an agreement with CPW. We expect the deal to be significantly earnings enhancing over the medium term.”

The following two tabs change content below.

admin

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam dignissim magna vitae dui posuere eu feugiat augue eleifend. Fusce sed tincidunt quam. Donec varius aliquam metus ut semper. Donec augue purus, feugiat interdum malesuada vel, aliquet quis massa. Nulla facilisi. Nam vel ante quam, et tincidunt dui. Maecenas venenatis libero eu nulla tincidunt et accumsan velit sodales. Nam congue mauris et felis porttitor blandit. Nam eget tempor massa. Nullam suscipit gravida eros, ac suscipit magna feugiat sit amet.

Latest posts by admin (see all)