TIDMADT
RNS Number : 7087X
AdEPT Telecom plc
10 May 2016
AdEPT Telecom plc
("AdEPT" or the "Company")
Acquisition of Comms Group UK Limited
The Board of AdEPT, one of the UK's leading independent
providers of unified telecommunications solutions, today announces
it has signed an agreement with effect from 1 May 2016 to acquire
the entire issued share capital of Comms Group UK Limited ("Comms
Group"), a well-established UK based specialist provider of unified
communications, Avaya IP telephony, hosted IP solutions, IT and
managed services.
Acquisition highlights:
-- Initial consideration of GBP3.5m plus the surplus cash balance of Comms Group at completion
-- Expected to be immediately earnings enhancing
-- Long term relationships with SME customers
-- Highly complementary product set
-- Asset-light strategy
-- Highly experienced senior management team to remain with Comms Group
Strategic rationale
Comms Group offers its clients the delivery of unified
communications and managed service solutions specialising in the
Avaya IP Office product, which is highly complementary to the
existing specialism of AdEPT's Fleet office in the Avaya Aura
product. The addition of a skilled team of Avaya IP Office experts,
together with an experienced IT Installation and Support team,
extends AdEPT's capability and enables it to address the whole
market from small through to very large enterprise customers.
AdEPT and Comms Group have each adopted capital asset-light
strategies and are dedicated to offering a full suite of flexible
data and unified communication solutions.
Information on Comms Group
Comms Group was established in June 2008 by Matt Tarry and Paul
Simmons. The company employs 25 people at its Northampton offices
and is accredited by Avaya, Cisco and Gamma, supporting customers
across the UK. Clients range from major, well known organisations
to regional and local businesses, service organisations,
entrepreneurs and online businesses in the public and private
sectors.
Comms Group offers particular expertise in the provision,
support and maintenance of Avaya IP Office product. Comms Group is
recognised as a Partner in Customer Excellence by Avaya, its
engineering team having achieved SME Expert status together with
outstanding independent Customer Satisfaction survey results. In
addition, Comms Group is a market leading provider of new and
refurbished telecom hardware, providing a supply channel for
customers to purchase new and high quality pre-owned equipment at
an attractive price point backed up by a comprehensive warranty. At
its Northampton offices, Comms Group holds stock from leading
manufacturers including Avaya, Mitel, Cisco, Plantronics and
Polycom which is used to fulfill direct and online sales
orders.
Comms Group has an experienced team of IT professionals which
are accredited with Microsoft, Cisco, GFI and Fujitsu in relation
to IT services. It provides installation, maintenance and support
for customer of all sizes, from a single PC to a virtual cluster,
offering pro-active services which allow remote monitoring of
customers IT equipment and remotely managed anti-virus software and
mail services.
Comms Group will retain its current presence and customer
service operation in Northampton. The vendors of Comms Group are to
be retained in their current roles within the business for a period
of at least 12 months post-completion.
The last filed accounts of Comms Group for the year ended 31
March 2015 reported revenue, operating profit and profit before tax
of GBP3.3 million, GBP0.5 million and GBP0.4m respectively. Capital
expenditure in the year ended 31 March 2015 was insignificant. Net
and gross assets at that date were GBP1.2 million and GBP1.8
million respectively.
The trading performance of Comms Group for the year ended 31
March 2016 was ahead of the historic results with the unaudited
management accounts of Comms Group showing revenue and operating
profit of approximately GBP3.7 million and GBP0.8 million
respectively.
Consideration
Initial consideration of GBP3.5 million plus the surplus cash
balance of Comms Group at completion is payable in cash. Further
consideration of up to a maximum of GBP3.5 million in cash is
payable dependent upon the trading performance of Comms Group
post-completion. The total consideration will be funded out of
AdEPT's existing bank facilities provided by Barclays.
Ian Fishwick, Chief Executive of AdEPT, commented:
"We are delighted to have acquired such a high quality and
profitable business with a strong committed management team. Comms
Group is an excellent fit because, like AdEPT, it is asset-light,
complements and builds upon AdEPT's existing expertise and skills,
particularly within the Avaya product set, and further extends its
offering in the unified communications space through the addition
of IT services. Following the acquisition, AdEPT is now in a
position to provide a complete unified communications offering
which can address the whole of the market, from small customers
right through to very large enterprise clients. Comms Group has a
well-developed customer base with long term relationships across a
range of customers. 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 3861 6625
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, managed
services, IT, Wi-Fi, 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, Virgin Media 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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