18 Oct 2010 08:00
Maintel Holdings Plc ("Maintel" or "the Company")
Acquisition of maintenance contracts and business assets
Maintel Holdings Plc, the telecoms services company, is pleased to announce that it has agreed to acquire certain maintenance contracts and business assets from Redstone PLC for a cash consideration of £1.75m.
The assets are being acquired by Maintel Europe Limited, a subsidiary of Maintel Holdings Plc, from Marcom Communications Limited ("Marcom") and Redstone Converged Services Limited ("RCS"). Both Marcom and RCS are subsidiaries of Redstone PLC.
Approximately £1.7m p.a. of customer contracts are being acquired, on which the Company believes industry standard associated revenues (equipment sales, professional services, for example) and cross sales will be achieved. In addition to the contracts being acquired, Maintel have agreed to supply certain customers of Redstone in respect of telecoms maintenance for approximately £280,000 p.a.
As part of the transaction, Maintel will transfer across 40 employees from RCS and Marcom. These individuals will be employed by Maintel Europe Limited.
Given only certain assets are being acquired from two separate businesses it is not possible to attribute a profit to the assets being acquired, although the key tangible asset being acquired comprises stock of approximately £50,000.
Completion is expected to take place on 29 October.
The Directors believe that these acquisitions will be earnings enhancing and will help the Company to continue grow its recurring maintenance revenue base.
Commenting on the acquisitions, Eddie Buxton, Chief Executive said:
"We are delighted to have completed these two acquisitions which provide a major step forward in supporting Maintel's strategic priorities of expanding its Avaya capabilities, adding to its recurring maintenance revenue stream and further strengthening its presence in the small to medium enterprise market
The acquired customer bases complement Maintel's existing businesses and provide cross selling opportunities for the Company's full portfolio of products and services. The acquisitions are expected to be earnings enhancing and significant integration synergies have been identified."
Enquiries:
Maintel
Dale Todd - Finance Director 020 7401 0562
FinnCap
Geoff Nash/Charlotte Stranner - 020 7600 1658