STP.L Regulatory News (STP)

23 Oct 2007 07:02

Spiritel PLC23 October 2007 Embargoed until 0700h, 23 October 2007 SPIRITEL PLC ("Spiritel" or "the Company") ACQUISITION OF VALUE ADDED MAINTAINER AND RESELLER, TDOTCOM LTD Spiritel plc, (AIM:STP) the telecommunications services company, is pleased toannounce the acquisition of tdotcom Ltd ("tdotcom") for a total consideration ofup to £260,000. tdotcom is an award winning supplier of voice and data systems and solutions tobusiness customers across the UK. In the financial year to 30 September 2007tdotcom recorded revenues of £706,000 and a net loss of £98,000. At 30 September2007 tdotcom had estimated net liabilities of £250,000. Spiritel intends to fully integrate the business of tdotcom within its existingoperations. This will substantially reduce overheads and restore tdotcom tosignificant profitability. It is expected that the transaction will be earningsenhancing to Spiritel within six weeks. tdotcom is primarily a reseller of Mitelequipment and solutions, of whom Spiritel is an award winning premiere partner -the highest level of accreditation for resellers. London-based tdotcom is Spiritel's fourth acquisition in just over a year,continuing Spiritel's strategy to add revenue and scale to its Businessdivision. The deal brings with it over 50 new customers, including BBCWorldwide, The City of London and The Barbican. tdotcom was also the firstcompany in the UK to sell Mitel's next generation dealer board solution tofinancial services customers. We expect the infrastructure and sales capabilityof our existing business to quickly grow revenues in this area. The rapidintegration of tdotcom into Spiritel Business will enable it to cross sell otherGroup products and services to tdotcom customers including voice, broadband,WiFi and line rental. The consideration for the acquisition is being satisfied by the payment, oncompletion, of £40,000 in cash, a deferred cash consideration of £70,000, plus afurther £150,000 in cash payable in equal instalments after six, twelve andeighteen months dependent on the performance of the business. Commenting on the acquisition, Alastair Mills, Chief Executive of Spiritel said:"Incorporating tdotcom, a Mitel partner, strengthens Spiritel's strategicrelationship with Mitel and is a great opportunity to quickly add additionalcustomers and profits to our Business division. The transaction builds on ourrecent success through the acquisition of complementary businesses which deliverscale and organic growth opportunities from cross selling. It is typical of thetype of transactions that we are pursuing where the acquired companies willquickly make a positive contribution to earnings." For further information please visit www.spiritelplc.com or contact: Spiritel plc Tavistock Communications Landsbanki SecuritiesAlastair Mills Simon Hudson Sindre OttesenChief Executive Clemmie Carr Sebastian JonesTel : +44 20 7160 0100 Tel: +44 20 7920 3150 Tel: +44 20 7426 9000 Notes to Editors Spiritel is a telecommunications group which seeks to take advantage of theopportunities created by rapidly changing telecoms markets in the UK as themigration to Internet Protocol (IP) based delivery accelerates. The Group is aconsolidator of the highly fragmented UK telecoms reseller market and aims tobuild a substantial customer base and scale through selective acquisitions. Weare organised into two divisions, Spiritel Technologies - which focuses on ourinfrastructure and IP products and services - and Spiritel Business whichprovides our customer services. Today, the Group offers a broad range of telecommunications services andproducts to a customer base of small and medium sized enterprises and anincreasing number of larger national organisations. We are a leader in theprovision of new, but proven, Voice over IP (VoIP) solutions that are firmlybased on the old fashioned service values which run throughout the Group. This information is provided by RNS The company news service from the London Stock Exchange