1st May 2015 06:52
LONDON (Alliance News) - AdEPT Telecom PLC said Friday that it has agreed to acquire UK-based communications provider Centrix Ltd for up to GBP10.5 million.
It will pay an initial consideration of GBP7 million in cash, with a further GBP3.5 million to be payable depending on Centrix's performance after acquisition. AdEPT will fund the acquisition using its existing bank facilities.
Centrix posted a pretax profit of GBP2.3 million on revenue of GBP8.8 million for 2014.
AdEPT expects the proportion of revenue it derives from the public sector and healthcare companies to more than double as a result of the acquisition, as those customers account for around 70% of Centrix's total revenue.
The acquisition is expect to add to earnings from completion.
"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," said Chief Executive Ian Fishwick in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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