STP.L Regulatory News (STP)

16 Oct 2006 07:01

Spiritel PLC16 October 2006 For immediate release 16 October 2006 SPIRITEL PLC ("Spiritel" or "the Company") Acquisition of Networks Direct (UK) Limited Spiritel plc (AIM: STP), the telecommunications services business, is pleased toannounce the earnings-enhancing acquisition of the entire share capital of theprivately held company Networks Direct (UK) Limited. Networks Direct provides inbound and outbound voice, broadband, wholesale linerental and non-geographic numbers to more than 300 SMEs, many of which areprofessional services firms on long term contracts. In the year to 31 May 2006Networks Direct had sales of £1.6 million and an operating profit, beforemanagement charges, of £488,000. Net assets as at 31 May 2006 amounted toapproximately £202,000. The acquisition supports Spiritel's strategic objective of broadening theCompany's routes to market by gaining direct relationships with the end users oftelecoms services to whom the Company can market its VoIP products. Under the terms of the acquisition, Spiritel will pay a total consideration of£1.6 million, comprising an initial £500,000 cash payment, £650,000 in Spiritelordinary shares of 1p each issued at 2.4p a share and a deferred cash payment of£450,000 due three months after completion. The cash consideration will befunded by cash and debt facilities. Alastair Mills, Spiritel's Chief Executive, commented: "I am delighted toannounce our second transaction so soon after the acquisition of CallplanLimited in September. This is a significant additional step in the delivery ofour objective of having a direct relationship with the end users of telecomsproducts and services." For further information:Spiritel plc 020 7160 0100Alastair Mills, Chief Executive Buchanan Communications 020 7466 5000Mark CourtMary-Jane Johnson Notes for Editors: About Spiritel plc Spiritel plc (AIM: STP) is a telecommunications group that joined the AIM marketof the London Stock Exchange in July 2004. We have multiple routes to market forour products and services, which include a range of both traditional andemerging telecoms technologies. Spiritel's client base includes corporate,wholesale and retail customers served directly through our value added resellerdivision Spiritel Retail, via web portals and through independent resellers. For further information please visit www.spiritelplc.com This information is provided by RNS The company news service from the London Stock Exchange