AdEPT Telecom buys Bluecherry, gives mixed trading update

Voice and data telecommunications firm AdEPT Telecom has acquired the share capital of Bluecherry Telecom as it looks to expand its customer base.AdEPT labelled it as a "small, partly in-fill, acquisition" and said that the business customers of Bluecherry complement its portfolio as they are all UK-based fixed-line customers taking products including lines, calls and broadband services. The company was bought for an initial consideration of £1.8m in cash, plus the value of the net assets at completion, estimated to be £0.25m. Further proceeds of between £0.2m and £0.75m will be payable dependent on the performance of the contract post-acquisition.The deal came alongside a mixed trading update from AdEPT, which revealed that while adjusted profits for the year ended March 31st would be ahead of the previous year and in line with expectations, turnover will be flat and slightly below forecasts.The company also said that the reduction in net borrowings, by £0.3m to £3m, was ahead of market expectations.The stock was up 1.5% at 137p by 08:21.BC