(Alliance News) - Midwich Group PLC has agreed to acquire specialist communication technology company Nimans Ltd, it said on Tuesday.
The Norfolk, England-based specialist audio-visual distributor will acquire Nimans from Nycomm Holdings Ltd for GBP27.5 million in cash, funded from existing cash reserves. An initial amount of GBP16.5 million is payable upon completion, with two fixed instalments of GBP5.5 million each after 12 and 24 four months.
Midwich's share price was up 5.7% to 634.00 pence each in London on Tuesday morning.
Based close to Manchester, Nimans has over 2,500 telephony, information technology, and retail customers for its unified voice-over-IP, security and networking offerings. In 2020, Nimans generated revenue of GBP114.3 million and a pretax profit of GBP5.8 million, with net assets on December 31, 2020 of GBP11.4 million.
The transaction is expected to complete in the first half of the calendar year.
Midwich said the acquisition will bring a new customer base and more vendor relationships, as well as an increase in its technological capabilities and product offerings.
"Nimans is a long-established business with a great reputation for technical excellence, customer service and logistics. Its traditional telecoms market has experienced significant change in recent years, bringing with it new revenue opportunities which the company has developed strongly, in areas such as unified communications, video conferencing, security and networking," said Managing Director Stephen Fenby.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Midwich Group (MIDW)