Knight Corporate Finance, the specialist advisers for the TMT sector, and finnCap, the adviser and broker to the AiM technology sector, have today announced the recommended cash offer for SpiriTel plc by Daisy Group plc. Knight CF and finnCap were advisers to SpiriTel in a deal that values the business at £37 million. SpiriTel shareholders will receive around £27 million with the balance being outstanding bank debt and earn-out payments that will become payable by Daisy.
Under the leadership of SpiriTel CEO Alastair Mills, the company was transformed by a series of 12 acquisitions which were swiftly integrated and went on to deliver a market-leading 15% organic growth through their “acquire, integrate and grow” strategy. SpiriTel’s B2B division was a start-up that grew into a business with revenues in excess of £30 million and more than 4,000 corporate customers.
Alastair Mills said: “It has been a real privilege to lead SpiriTel through this period of transformation and establish the company as one of the fastest growing providers of integrated communications to UK businesses. SpiriTel has demonstrated how acquisitions can build real value and I am sure the business will continue to prosper as part of the Daisy Group.
“We chose Knight CF as our advisers having experienced their work during two of our acquisitions where they advised the vendors. We were impressed at their knowledge and understanding of the sector, their buyer relationships and execution ability to ensure the deals completed. finnCap has been our broker since 2008 and with their in-depth sector knowledge and experience, we were well supported through a transformational period.”
Adam Zoldan, director at Knight CF, said: “We are delighted to support the SpiriTel board in gaining maximum value for stakeholders, in this, our largest deal to date. Alastair and his team have demonstrated how a well managed series of acquisitions can deliver a spectacular return for investors. The deal is also indicative of the continued buoyancy of the sector and we expect more buyers to seek acquisitions with an increasing number supported by funding from the private equity sector. As a result we look forward to assisting more companies to realise value as the M&A consolidation continues throughout 2011.”
Marc Young, director of corporate finance at finnCap, added: “We are pleased to have been able to contribute to the successful sale of SpiriTel whom we have advised alongside Knight over a period of intense, well planned and executed acquisitive growth. SpiriTel has demonstrated how AiM quoted businesses are able to benefit from a public market presence to fund growth and drive attractive exit multiples. finnCap is the No.1 ranked adviser and broker to the AiM technology sector and we continue to seek ambitious management teams to work with.”