Business and public sector telecoms provider AdEPT Telecom (LON:ADT) has strengthened its presence in the internet-based market with the acquisition of Comms UK in Northampton.
The initial consideration is £3.5mln plus Comms Group’s cash balances, with up to a further £3.5mln payable on performance.
The deal is expected to be immediately earnings enhancing.
Like AdEPT, Comms provides business customers with voice and data telecoms and is a specialist in US firm Avaya's systems.
Its has particular expertise in Avaya’s IP Office product and will bring with it experienced IT installation and support teams.
Founded in 2008, Comms employs 25 people at its offices in Northampton and is accredited by Avaya, Cisco and Gamma.
In the year to March 2015, Comms posted revenues of £3.3mln and a pre-tax profit of £0.4mln.
Management accounts for the year just ended show revenues of £3.7mln and operating profits of £0.8mln.
Ian Fishwick, AdEPT’s chief executive, said, like his own company, Comms Group is asset-light and will add to the existing group’s skillset, particularly within Avaya Aura products.
“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," he said.
Broker Northland raised its 2017 revenue outlook by £3.4mln to £32.6mln following the purchase.
Its price target also rises to 310p from 300p based on the "potential initial impact of the acquisition strengthening AdEPT’s Centrix-based unified communications offering".
Centrix is a business AdEPT acquired last year.
Shares rose 0.5p to 268p.
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