1 Feb 2010 07:00
1 February 2010
SPIRITEL PLC
("SpiriTel" or "the Group")
ACQUISITION OF BOUCON NETWORK SOLUTIONS LIMITED
A Swansea based Mitel IP Telephony Provider
SpiriTel plc, (AIM:STP), the business communications service provider, is pleased to announce the acquisition of the entire issued share capital of Boucon Network Solutions Limited ("Boucon"), for an initial consideration of £0.65 million. The acquisition is SpiriTel's ninth since 2006.
Boucon is a leading provider of Internet Protocol (IP) based telephony solutions, based in Swansea and, like SpiriTel, has the highest level of accreditation with Mitel as a Premier Partner. Boucon currently services a high quality customer base including the DVLA and several NHS Trusts and County Councils, with whom Boucon has contracted maintenance agreements. The acquisition broadens both the scale and reach of SpiriTel's rapidly growing Business Division as well as increasing the Group's proportion of long term contractual income.
Under the terms of the acquisition, SpiriTel has agreed to pay £0.65 million in cash on completion. Performance related earn-out payments of up to £0.25 million may also become payable in cash by December 2011. In the financial year ending 31 March 2009, Boucon reported revenues of £1.85 million, EBITDA of £0.1 million and profit before tax of £0.03 million. As at 31 December 2009, Boucon had net assets of £0.4 million.
SpiriTel anticipates a straightforward integration process for Boucon, utilising its tried and tested integration process. This will focus on leveraging the operational gearing of SpiriTel's existing operations to deliver cost synergies. In addition, Boucon focuses exclusively on fixed line telephony solutions and the Directors of SpiriTel believe there is a significant opportunity to cross sell the Group's 'complete business communications' service offering, which includes network services and mobile products, into the Boucon customer base. The acquisition is expected to be immediately earnings enhancing.
Commenting on the acquisition, Alastair Mills, Chief Executive of SpiriTel said: "Boucon is a strong fit, both strategically and geographically, for our IP Communications line of business. This transaction represents another step forward in our acquisition-led growth strategy."
He added: "SpiriTel now has a critical mass in terms of the scale of our Business Division that allows us to bolt on acquired companies and swiftly deliver the resulting synergy benefits of cost savings and new sales opportunities. SpiriTel has an excellent track record in effective acquisition integration and we are confident that Boucon will prove a highly profitable addition. I am delighted to welcome the Boucon team to the Group."
Robert Bouché, Joint Managing Director of Boucon said: "Over a 15 year period, we have worked hard to establish Boucon as a leading provider of telephony solutions to a high quality customer base. SpiriTel is a respected, award winning service provider and can offer the full range of voice and data solutions. In a rapidly evolving communication market this is increasingly important and we are confident that our customer base is in good hands."
For further information please visit www.spiritelplc.com or contact:
| SpiriTel plc | Tavistock Communications | FinnCap |
| Alastair Mills | Simon Hudson | Geoff Nash |
| Chief Executive | James Midmer | Marc Young |