Mitie Regulatory News (MTO)

5 August 2021

Mitie Group Plc

LEI number: 213800MTCLTKEHWZMJ03

Mitie bolsters telecoms capability with the acquisition of DAEL Ventures UK

Mitie Group plc (Mitie or the Group) announces today that it has acquired DAEL Ventures Limited (DAEL Ventures), a leading provider of acquisition, design and construction (ADC) services in the UK for mobile telecoms infrastructure, for £15m. This acquisition will broaden Mitie's expertise in the fast-growing telecoms sector, delivering end-to-end service for our customers and giving Mitie market-leading capabilities. The acquisition will be accretive to earnings and funded through existing facilities.

DAEL Ventures, (together with its subsidiaries DAEL Telecom Ltd, JB Towers Limited and JISTICS Limited), is the UK arm of Mak Holding Limited, which is related to DAEL Group Netherlands. DAEL Group Netherlands will continue to operate under its existing private ownership and is not part of the transaction.

Alongside ADC services, DAEL Ventures also provides specialist managed services of temporary mobile infrastructure to support the special events market, as well as bespoke structural engineering and design services for telecoms assets.

Highlights

· DAEL Ventures' revenue for the twelve months to 31 December 2020 was £18.3m and profit before tax was £0.22m including a one-off charge of £0.42m. Gross assets as at 31 December 2020 were £6.9m

· Revenue is expected to grow significantly as the telecoms industry gears up to establish a full 5G network over the next 3-5 years

· DAEL Ventures' key customers include the UK's leading telecoms operators

· The consideration of £15m, subject to a completion accounts process, will be paid in cash and will be funded from existing facilities

· Andy Train, Managing Director, DAEL Telecom, and James Brennan, Managing Director, JB Towers, will join Mitie to create a new Telecoms business unit within Mitie's Technical Services division

· The transaction is structured as an acquisition of the entire issued share capital of DAEL Ventures and each of its subsidiaries including the minority shareholding in JB Towers, owned by James Brennan

Phil Bentley, Chief Executive Officer, Mitie, said:

"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. 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."

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For further information

About Mitie

Founded in 1987, Mitie's job is to look after places where Britain works and is the leading facilities management company in the UK. We offer a range of services to Central Government and Defence customers; Communities (Healthcare, Education and Local Authorities); and Technical Services (Engineering Services, Energy, Water and Real Estate Services) and Business Services (Security, Cleaning and Office Services) to Private Sector clients in Financial Services, Manufacturing, Transport, Retail and Telecoms and increasingly to the public sector. Finally, our Specialist Services (Care & Custody, Landscapes and Waste Management) division serves both the public and private sectors in these niche businesses. 

Mitie acquired Interserve's FM business in December 2020 and now employs 75,000 people. We are the champion of the 'Front-Line Heroes' who have kept Britain working during the COVID-19 pandemic. We take care of our customers' people and buildings, through the 'Science of Service', delivering essential services and deploying industry leading technology to create safe and effective workspaces. 

The business continues to execute its technology-led strategy and in the past six months has received multiple awards. 

Find out more at www.mitie.com.