(Alliance News) - Mitie Group PLC on Thursday announced it has bought DAEL Ventures Ltd in a GBP15 million cash deal, as it looks to expand its operations in the telecoms sector.
Gloucestershire-based DAEL Ventures is the UK arm of Mak Holding Ltd and provides acquisition, design and construction services for mobile telecoms infrastructure.
The acquisition will broaden Mitie's capacity in the telecoms sector, the outsourcing and energy services firm noted.
"The acquisition, which is aligned with our new growth and margin enhancement strategy, provides us with the opportunity to broaden our scale and expertise in the fast-growing telecoms sector," commented Chief Executive Phil Bentley.
Glasgow-based Mitie provides facilities management and professional services.
"Mitie will now have market-leading capabilities, putting us in a strong position to take advantage of the growth prospects arising from the rollout of 5G in the UK."
DAEL is expected to be accretive to earnings and funded through Mitie's existing facilities. Revenue at DAEL is expected to grow significantly as the telecoms industry gears up to establish a full 5G network over the next three to five years, Mitie predicted.
Mitie shares were trading up 0.8% at 65.00 pence each in London on Thursday morning.
By Will Paige; willpaige@alliancenews.com
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Mitie (MTO)