24th Mar 2006 07:01
AdEPT Telecom plc24 March 2006 AdEPT Telecom plc announces the acquisition of Admiral Managed Networks Limited AdEPT Telecom plc ("AdEPT Telecom" or "the Company"), a leading non-network, UKtelecom company that provides fixed-line calls and line rental to business andresidential customers in the UK, is pleased to announce the acquisition ofAdmiral Managed Networks Limited ("Admiral"). The acquisition is AdEPT Telecom's first since its recent admission to AIM on 15February 2006, reflecting the Company's aim to be a leading consolidator in thefragmented fixed-line business market. Admiral is a natural fit with AdEPT Telecom as it is a fixed-line telecomreseller and provides voice telephone services to approximately 1,000 businesscustomers on a national basis, generating revenues of approximately £2.0 millionand profits before tax of approximately £0.19m in the year to 31 July 2005. Inline with its acquisition strategy, AdEPT Telecom will fully integrate thecontracts acquired from Admiral into its existing business. The maximum consideration payable by AdEPT Telecom is £1.6m, to be satisfied bya cash payment of £0.8 million on completion and the balance of up to £0.8million payable in two tranches in the 12 months following completion, subjectto future operational and financial criteria. The total consideration will befunded out of AdEPT Telecom's available cash reserves. AdEPT Telecom is also pleased to announce that the acquisition of TransglobalTelecommunications Limited ("Transglobal"), completed on 14 February 2006, hasalready been fully integrated by AdEPT Telecom. The acquisition of Transglobaladded a further 2,700 business customers who are now receiving bills under theAdEPT Telecom brand. Over the last three years, AdEPT Telecom has completed 12 acquisitions andrapidly integrated the acquired businesses, usually within 6 weeks followingcompletion. AdEPT Telecom has a highly efficient automated back office system,which is fully integrated to manage all customer processes. This process modelis applied to companies it acquires, and together with AdEPT Telecom's lean coststructure enables it to achieve EBITDA margins of approximately 20 per cent. onsales from acquired assets. Commenting on the acquisition, Roger Wilson, Chairman of AdEPT Telecom said: "Iam delighted that we have now concluded our 12th acquisition in less than 3years. Admiral's business is in line with our strategic focus and we areconfident we will be able to continue growing by acquiring similar companiesfrom within this highly fragmented market. We are equally sure of our ability torapidly integrate these businesses and improve their profitability, asexemplified by our recent acquisition of Transglobal." -ENDS- Enquiries+-----------------------+----------------------------+-------------------------+|Adept Telecom |Roger Wilson |Tel: 01491 571120 || |Chairman | |+-----------------------+----------------------------+-------------------------+|Strand Partners |Simon Raggett |Tel: 020 7409 3494 || |Warren Pearce | |+-----------------------+----------------------------+-------------------------+|Teather & Greenwood |Stephen Austin |Tel: 020 7426 9000 || |Adam Pollock | |+-----------------------+----------------------------+-------------------------+|Cardew Group |Tim Robertson |Tel: 020 7930 0777 || |M: 07900 927650 | || |Shan Shan Willenbrock | |+-----------------------+----------------------------+-------------------------+ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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