The Rocom sale raised £12.45 million and will go some way to wiping out the debts built up by AT Comms over the last couple of years and placating shareholders.
In a statement ACT Group said the £12.45 million consideration will be satisfied via £11.95 million in cash on completion, with a further non-contingent cash sum of £0.5 million payable on 23rd March 2010. The non-contingent deferred consideration is secured behind Niman's bank facilities.
For the year ended 31st December 2008, Rocom generated £45.4 million of Group revenues and £3.5 million of Group EBITDA. Rocom generated a cash outflow before tax of approximately £2 million during the same period.
ATC Group went on to add, ‘The sale of Rocom enables the Group to improve its strategic focus around its two core divisions, Servassure and ATC Solutions, and reduces the dependence on lower margin distribution revenues. Servassure is focussed on continuing to provide successful and growing support services to large telecommunications companies, including BT, KCom, Siemens and Verizon, whilst ATC Solutions continues to deliver comprehensive communications management solutions to SME and corporate business throughout the UK. The Board remains committed to maximising shareholder value and continues to review the Group's operations and strategy to ensure that this is achieved.
As a result of this successful disposal and the step change in the composition of the Group, Alex Tupman today announces his intention to step down as CEO of the Group. Alex founded the company in 1999 and has overseen its transformation and growth over the last ten years and considers this to be the right time to hand over to a new team which is committed to further the growth and success that has been achieved to-date. Scott Kean, currently COO and responsible for the success of the Group's Servassure division, will hold the position of CEO in the near term whilst the board undertakes a search program to ensure that the best candidate is appointed as a permanent successor.’
Alex Tupman, CEO commented:- "I am delighted that we have successfully completed the sale of Rocom. We wish our former Rocom colleagues every success and thank them for their contribution to the Group. The £12.45 million consideration significantly reduces the Group's net debt and enables the Group to become a more focused, high margin business, underpinned by strong recurring revenue streams.
This follows on from our recent trading update, which announced a three year contract win with BT worth several million pounds and a pipeline of new business for our Servassure Division, which is significantly stronger than this time last year and demonstrates the strength of the Group's brand and quality of service.
I am very proud of what has been achieved over the last ten years and wish to thank everyone at ATC for their hard work and dedication over the years. I leave the Group with a strengthened balance sheet and a refocused business primed for continued growth under an established management team and a fabulous workforce. As a result, the Board is confident of the Group's long term prospects."
Scott Kean has been appointed Interim CEO at ATC until a successor to Tupman has been identified.