Reseller AT Communications Group Plc has conditionally agreed to acquire the Sterry Group for a total consideration of £6.27 million. Sterry recently landed authorisation to supply the NHS with IT and Communications solutions.
AT Comms say that in addition to adding scale and resource, the proposed acquisition will enable the enlarged Group to immediately benefit from cross-selling opportunities between the respective customer bases. The Sterry Group will also give ATC a significantly enhanced maintenance competence and capability where Sterry has 1350 customer contracts that supplied half the company’s turnover last year,
Alex Tupman, ATC Group Chief Executive commented: “We have an excellent track record of successfully integrating acquisitions as well as exploiting the growth opportunities that they bring. This earnings enhancing acquisition is a major step forward in our strategy to be the market leading business–to-business systems integrator by providing additional scale and resources. With our complementary customer bases, extensive portfolio and expertise, it will put the enlarged Group at the forefront of integrating voice, data and video solutions.
“Sterry has an attractive blue chip customer base which delivers strong recurring revenues. This proposed acquisition will not only bring about cross-selling opportunities within the customer bases and through our best of breed portfolio of services, but we can also extend ATC’s offerings with Sterry’s additional accreditation partnerships, product ranges and support network.”