1st Jun 2006 07:03
AdEPT Telecom plc01 June 2006 01 June 2006 AdEPT Telecom plc announces the acquisition of 10,000 business customers from Fizz Telecom 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 of10,000 business customers from Fizz Telecom Limited ("Fizz"). Fizz is a telecomsvoice reseller established in 2004. The acquisition is AdEPT Telecom's third acquisition this year, after acquiringTransglobal Limited in February 2006, and Admiral Managed Networks Limited inMarch 2006. The 10,000 customers acquired from Fizz are a natural fit with AdEPT Telecom asthey are all fixed-line telecom small business customers spending on average£32 per month. The management accounts of Fizz to March 2006 demonstrate that the business generated pre-tax profit margins of approximately 4.8%. The consideration payable by AdEPT Telecom is based upon performance criteriaand is estimated at £3.2 million, to be satisfied by a cash payment of £1.5million on completion, £1.5 million after four months and a final performance payment currently estimated at £0.2 million at the end of the first year. Thetotal consideration will be funded out of AdEPT Telecom's existing bankingfacilities. Over the last three years, AdEPT Telecom has completed 13 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 leancost structure enables it to achieve EBITDA margins approaching 20% on salesfrom acquired assets. Commenting on the acquisition, Roger Wilson, Chairman of AdEPT Telecom said: "The Fizz customer base is of very high quality with 100% of customers takingboth line rental and calls, many are on five year contracts, with 95% paying byDirect Debit. They therefore make an excellent fit with our existing customer base and business model. The fact that we can acquire and integrate three businesses in such rapidsuccession reflects well on AdEPT's processes and management capabilities." -ENDS- Enquiries +--------------------+------------------------------+------------------+|Adept Telecom |Roger Wilson |Tel: 01491 571120 || | | || |Chairman | |+--------------------+------------------------------+------------------+|Strand Partners |Simon Raggett |Tel: 020 7409 3494|| | | || |Warren Pearce | |+--------------------+------------------------------+------------------+|Teather & Greenwood |Robert Naylor |Tel: 020 7426 9000|| | | || |Adam Pollock | |+--------------------+------------------------------+------------------+|Cardew Group |Tim Robertson |Tel: 020 7930 0777|| | | || |Shan Shan Willenbrock | || | | || | | |+--------------------+------------------------------+------------------+ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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