ADT.L Regulatory News (ADT)

AdEPT Telecom plc

("AdEPT" or the "Company")

Acquisition of Centrix Limited

The Board of AdEPT, one of the UK's leading independent providers of voice and data telecommunications solutions, today announces it has signed an agreement with effect from 1 May 2015 to acquire the entire issued share capital of Centrix Limited ("Centrix"), a well-established UK based specialist provider of complex unified communications, Avaya IP telephony, hosted IP solutions and managed services.

Acquisition highlights:

· Initial consideration of £7m plus the cash balance of Centrix at completion

· Expected to be earnings enhancing from completion

· AdEPT group revenue run rate anticipated to increase by approximately 30%

· Centrix revenues approximately 80% recurring. Long term relationships with medium to large enterprise customers

· Highly complementary product set

· Well-matched customer base

· Asset-light strategy

· Highly experienced senior management team to remain with Centrix

Strategic rationale

Centrix offers its clients the delivery of complex unified communications and managed service solutions, which is an increasing requisite for AdEPT's existing and targeted enterprise and public sector customer base. Centrix skills and product set will complement and enhance AdEPT's existing services. Approximately 80% of Centrix revenue is generated from recurring revenue streams.

AdEPT and Centrix have both adopted capital asset light strategies and are dedicated to offering a full suite of flexible data and unified communication strategies.

Information on Centrix

Centrix is one of the UK's leading providers of Avaya IP telephony solutions, partnering with them since 1996 (when they were AT&T). With over 300 Avaya solutions in the UK and across the world Centrix has one of the largest customer bases backed by specialist knowledge of the Avaya Aura solution in particular.

Centrix offers smart building technology via the Medusa product, which is five products rolled in to one. Medusa is a bandwidth shaper/slicer, a firewall, a switch, a reporting engine and a billing engine. Medusa allows multi-tenanted buildings to take one or more internet connection and to share those connections to multiple businesses and then to report and bill those end users independently for their usage.

Centrix provides high end communication solutions to larger enterprise customers, particularly in the public sector, business centre and healthcare sectors which account for approximately 70% of Centrix total revenue. Therefore the Centrix customer base complements that of AdEPT. It is anticipated that the proportion of revenue derived from public sector and healthcare customers for the AdEPT Group will more than double as a result of the acquisition.

Centrix will retain its current presence and customer service operation in Hook, Hampshire. The vendors of Centrix are to be retained in their current capacity within the business for a period of at least 12 months post-acquisition.

The audited accounts of Centrix for the year ended 31 December 2014 reported turnover, operating profit and profit before tax of £8.75 million, £2.26 million and £2.26m respectively. Capital expenditure in the year ended 31 December 2014 was insignificant. Net and gross assets at that date were £0.83 million and £2.80 million respectively.

Consideration

Initial consideration of £7 million plus the cash balance of Centrix at completion is payable in cash. Further consideration of up to £3.5 million may be payable in cash dependent upon the trading performance of Centrix post-acquisition. The total consideration will be funded out of AdEPT's existing bank facilities which were renewed and extended on 23 April 2015.

Ian Fishwick, Chief Executive of AdEPT, commented:

"We are delighted to have acquired such a high quality, well-run and profitable business with a strong management team. Centrix is an excellent fit because, like AdEPT, it is asset-light, complements and builds upon AdEPT's existing expertise and skills, and further extends its offering in the unified communications space. Centrix has a high level of recurring revenue and offers a well-developed customer base with long term relationships across a range of medium and large enterprises, including the related vertical markets of public sector and healthcare. The acquisition is expected to be earnings enhancing from completion."

For further information on AdEPT please visit www.adept-telecom.co.uk or contact:

About AdEPT Telecom plc:

AdEPT Telecom plc is one of the UK's leading independent providers of voice and data telecommunications solutions. The Company provides a complete communications portfolio of fixed line calls, line rental, mobile, VoIP, equipment installation, hardware and data connectivity products. AdEPT's tailored services are used by thousands of businesses and residential customers across the UK and are brought together through the strategic relationships with tier-1 suppliers such as BT Openreach, Vodafone, TalkTalk Business and Avaya.

AdEPT is listed on the London Stock Exchange (Ticker: ADT). For further information please visit: www.adept-telecom.co.uk