AdEPT Telecom plc Acquisition (9483L)
May 01 2015 - 2:00AM
UK Regulatory
TIDMADT
RNS Number : 9483L
AdEPT Telecom plc
01 May 2015
AdEPT Telecom plc
("AdEPT" or the "Company")
Acquisition of Centrix Limited
The Board of AdEPT, one of the UK's leading independent
providers of voice and data telecommunications solutions, today
announces it has signed an agreement with effect from 1 May 2015 to
acquire the entire issued share capital of Centrix Limited
("Centrix"), a well-established UK based specialist provider of
complex unified communications, Avaya IP telephony, hosted IP
solutions and managed services.
Acquisition highlights:
-- Initial consideration of GBP7m plus the cash balance of Centrix at completion
-- Expected to be earnings enhancing from completion
-- AdEPT group revenue run rate anticipated to increase by approximately 30%
-- Centrix revenues approximately 80% recurring. Long term
relationships with medium to large enterprise customers
-- Highly complementary product set
-- Well-matched customer base
-- Asset-light strategy
-- Highly experienced senior management team to remain with Centrix
Strategic rationale
Centrix offers its clients the delivery of complex unified
communications and managed service solutions, which is an
increasing requisite for AdEPT's existing and targeted enterprise
and public sector customer base. Centrix skills and product set
will complement and enhance AdEPT's existing services.
Approximately 80% of Centrix revenue is generated from recurring
revenue streams.
AdEPT and Centrix have both adopted capital asset light
strategies and are dedicated to offering a full suite of flexible
data and unified communication strategies.
Information on Centrix
Centrix is one of the UK's leading providers of Avaya IP
telephony solutions, partnering with them since 1996 (when they
were AT&T). With over 300 Avaya solutions in the UK and across
the world Centrix has one of the largest customer bases backed by
specialist knowledge of the Avaya Aura solution in particular.
Centrix offers smart building technology via the Medusa product,
which is five products rolled in to one. Medusa is a bandwidth
shaper/slicer, a firewall, a switch, a reporting engine and a
billing engine. Medusa allows multi-tenanted buildings to take one
or more internet connection and to share those connections to
multiple businesses and then to report and bill those end users
independently for their usage.
Centrix provides high end communication solutions to larger
enterprise customers, particularly in the public sector, business
centre and healthcare sectors which account for approximately 70%
of Centrix total revenue. Therefore the Centrix customer base
complements that of AdEPT. It is anticipated that the proportion of
revenue derived from public sector and healthcare customers for the
AdEPT Group will more than double as a result of the
acquisition.
Centrix will retain its current presence and customer service
operation in Hook, Hampshire. The vendors of Centrix are to be
retained in their current capacity within the business for a period
of at least 12 months post-acquisition.
The audited accounts of Centrix for the year ended 31 December
2014 reported turnover, operating profit and profit before tax of
GBP8.75 million, GBP2.26 million and GBP2.26m respectively. Capital
expenditure in the year ended 31 December 2014 was insignificant.
Net and gross assets at that date were GBP0.83 million and GBP2.80
million respectively.
Consideration
Initial consideration of GBP7 million plus the cash balance of
Centrix at completion is payable in cash. Further consideration of
up to GBP3.5 million may be payable in cash dependent upon the
trading performance of Centrix post-acquisition. The total
consideration will be funded out of AdEPT's existing bank
facilities which were renewed and extended on 23 April 2015.
Ian Fishwick, Chief Executive of AdEPT, commented:
"We are delighted to have acquired such a high quality, well-run
and profitable business with a strong management team. Centrix is
an excellent fit because, like AdEPT, it is asset-light,
complements and builds upon AdEPT's existing expertise and skills,
and further extends its offering in the unified communications
space. Centrix has a high level of recurring revenue and offers a
well-developed customer base with long term relationships across a
range of medium and large enterprises, including the related
vertical markets of public sector and healthcare. The acquisition
is expected to be earnings enhancing from completion."
For further information on AdEPT please visit
www.adept-telecom.co.uk or contact:
AdEPT Telecom Plc
Roger Wilson, Chairman 07786 111 535
Ian Fishwick, Chief Executive 01892 550 225
John Swaite, Finance Director 01892 550 243
Northland Capital Partners Limited
Nominated Adviser
Edward Hutton / Gerry Beaney
Broking
John Howes / Abigail Wayne 020 7382 1100
About AdEPT Telecom plc:
AdEPT Telecom plc is one of the UK's leading independent
providers of voice and data telecommunications solutions. The
Company provides a complete communications portfolio of fixed line
calls, line rental, mobile, VoIP, equipment installation, hardware
and data connectivity products. AdEPT's tailored services are used
by thousands of businesses and residential customers across the UK
and are brought together through the strategic relationships with
tier-1 suppliers such as BT Openreach, Vodafone, TalkTalk Business
and Avaya.
AdEPT is listed on the London Stock Exchange (Ticker: ADT). For
further information please visit: www.adept-telecom.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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