SpiriTel, the business communications service provider, has announced the acquisition of the entire issued share capital of Mobotel Management Limited for an initial consideration of £2.15 million. The acquisition is SpiriTel’s tenth since 2006.
Mobotel is a specialist mobile voice and data reseller, based in Fulham, London and has grown rapidly over the last five years to become one of the UK’s largest independent B2B suppliers of BlackBerry solutions.
The company focuses on the provision of converged mobility services to corporate customers in the legal and financial services sectors. Over 90% of connections from Mobotel’s 160 corporate customers include BlackBerry services. It also provides a suite of mobile applications to several of its larger corporate customers, and is a leading supplier of turnkey mobile data solutions.
Mobotel has a high value customer base with an ARPU of almost £50 per connection per month, which is significantly higher than the industry average. Its client list includes well known names such as solicitors Mishcon de Reya, Houlihan Lokey, the NHS Confederation, Eden Financial Limited and Storm Models, Britain’s leading model agency.
Under the terms of the acquisition, SpiriTel has agreed to pay £2.0 million in cash on completion plus an additional payment within 60 days of approximately £0.15 million on final determination of net assets. Performance-related earn-out payments of up to £1.0 million may also be payable in cash if the Company meets future growth and cross sell targets beyond existing performance. In the year ended 31 March 2009, Mobotel had revenues of £2.1 million.
SpiriTel will use its tried and tested integration framework to incorporate Mobotel into its SpiriTel Business Division, which has offices in London, Wigan and Swansea. The Directors expect to realise significant operational synergies and anticipate that the acquisition will be immediately earnings enhancing.
Commenting on the acquisition, Alastair Mills, Chief Executive of SpiriTel said: “This acquisition is particularly significant, being our tenth since we established SpiriTel Business in 2006. I am hugely proud of our progress over the past four years and our recent results are a testament to a focussed business model, well executed by a talented and dedicated team at SpiriTel.
He added: “Mobotel is a well established provider of mobile services and solutions and is a great fit for our rapidly expanding Group. The customer base is particularly attractive in that most connections are BlackBerry and the ARPU is well above the industry average. Despite our rapid growth, we take the integration phase very seriously and, using our own integration framework, we will quickly deliver identified cost synergies and pursue the extensive cross selling opportunities.”