Last checked at 
(Alliance News) - Newbury, Berkshire-based Gamma Communications PLC on Thursday said it bought 80% of the German-based IP telephony services provider HFO Holding AG.
Gamma, a business telecommunications technology developer, said it paid EUR20.4 million in cash for the stake, having had GPB37.7 million in net funds as of Tuesday.
Gamma also noted that it has the option to acquire the remaining 20% over the next three years.
This will be Gamma's debut in German markets, it said. The company currently has market presence in the Netherlands, after the acquisition of SX Groep in 2018, and Spain, having bought Voz Telecom in April.
Gamma said in its statement Thursday: "These countries are following a similar cloud telephony migration path to the UK, providing Gamma with a significant opportunity to leverage its capabilities and know-how to build leadership at a critical time in the development of this large continental growth market."
HFO has recently started to sell cloud private branch exchange services, which is a business-grade telephone network that allows communication within and outside a business.
"Gamma believes that it can use its commercial strength and expertise of developing and selling a market leading cloud private branch exchange solution via the channel to accelerate HFO's growth in the emerging cloud private branch exchange market in Germany," the company said.
Gamma said for 2019, HFO had revenue of EUR45.9 million, operating profit of EUR3.2 million and had net assets of EUR4.6 million.
Gamma shares were up 6.3% on Thursday morning, trading at 1,361.00 pence in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
