TIDMADT
RNS Number : 9284V
AdEPT Telecom plc
03 February 2017
AdEPT Telecom Plc
("AdEPT" or the "Company")
New GBP30m Banking Facility and Acquisition
NEW BANK FACILITY
-- New GBP30 million 5 year debt facility
-- Facility structure with increased flexibility
-- Increased capacity to support acquisition growth strategy
AdEPT Telecom, one of the UK's leading independent providers of
unified communications solutions, today announces that it has
signed a GBP30 million 5 year revolving credit facility
agreement.
The new larger facility is to be provided by Barclays Bank Plc
("Barclays") and The Royal Bank of Scotland Plc ("RBS) on an equal
basis and will be used by the Company to fund the strategic
acquisition of businesses to leverage benefits from increased scale
and a wider product set.
Following the successful execution of the Company's acquisition
strategy the Company had outgrown the previous GBP15 million
revolving credit facility, provided by Barclays, relative to the
profitability of the Company. The new syndicated debt facility
provides increased scale and has a more flexible structure when
compared to the Company's previous debt facility agreement.
Roger Wilson, Chairman of AdEPT, commented:
"We are delighted to have obtained the support of the team at
RBS to work alongside our existing debt provider, Barclays, and
provide a larger syndicated debt facility. This new bank facility
provides the Company with a larger and more flexible structure to
enable the Company continue with its strategy of acquiring earnings
enhancing businesses for future growth."
ACQUISITION OF OUR IT DEPARTMENT LIMITED
The Board of AdEPT also announces that it has signed an
agreement with effect from 1 February 2017 to acquire the entire
issued share capital of Our IT Department Limited ("OurIT") and its
trading subsidiary called Brightvisions Limited ("Brightvisions"),
(together referred to as "OurIT Group") both well-established UK
based specialist providers of IT Services.
Acquisition highlights
-- Initial consideration of GBP4.75m less the net debt plus
working capital of OurIT Group at 31 January 2017
-- Expected to be earnings enhancing from completion
-- AdEPT group revenue run rate anticipated to increase by approximately 15%
-- Long term relationships with medium to large enterprise customers
-- Highly complementary product set for telecommunication and IT convergence
-- Well-matched customer base with London and South-East focus
-- Asset-light strategy
-- Highly experienced senior management team to remain with OurIT
Strategic rationale
OurIT Group offers its clients the delivery of outsourced IT
services and managed service solutions. The convergence of
telecommunications and IT is an increasing requirement for AdEPT's
existing and targeted enterprise and public sector customer base.
The highly skilled team and product set at OurIT Group will
complement and enhance AdEPT's existing services, allowing AdEPT to
provide a full managed service to customers, incorporating unified
communications and IT.
AdEPT and OurIT Group have both adopted capital asset light
strategies which are highly cash generative and are dedicated to
offering a full suite of flexible IT, data and unified
communication strategies.
Information on OurIT
OurIT, founded in 1993, is is a highly accredited IT services
provider with over 20 years' experience, offering award winning 24
hour IT support services and technology solutions. OurIT and
Brightvisions have a directly employed team of highly skilled
certified professionals, including Microsoft Gold Partner and
Business Specialist, Apple Specialist, Cisco Certified Partner,
Dell Preferred Partner, and is focused on providing outsourced IT
services to customers in London and the South East.
OurIT operates from premises in Chingford, East London and Bevis
Marks. Brightvisions is based in St Neots, near Cambridge. OurIT
and Brightvisions will retain their current presence and customer
service operations in Chingford, Bevis Marks and St Neots. The
vendor of OurIT Group is to be retained in his current capacity
within the business for a period of at least 12 months
post-acquisition.
The statutory accounts of OurIT for the year ended 31 December
2015 reported turnover, operating profit and profit before tax of
GBP3.71 million, GBP0.286 million and GBP0.259m respectively.
Capital expenditure in the year ended 31 December 2015 was
insignificant. Net and gross assets at that date were GBP0.49
million and GBP1.07 million respectively.
The statutory accounts of Brightvisions for the year ended 31
December 2015 reported turnover, operating profit and profit before
tax of GBP1.46 million, GBP0.165 million and GBP0.167m
respectively. Capital expenditure in the year ended 31 December
2015 was insignificant. Net and gross assets at that date were
GBP0.32 million and GBP0.53 million respectively.
Consideration
Initial consideration of GBP4.75 million less the net debt plus
working capital of OurIT Group at 31 January 2017 ("Net Debt") is
payable in cash. Further consideration of up to GBP3.75 million,
less the Net Debt plus working capital, may be payable in cash
dependent upon the trading performance of OurIT Group
post-acquisition. The total consideration will be funded out of
AdEPT's new bank facility, with headroom in the facility to support
further acquisitive growth.
Ian Fishwick, Chief Executive of AdEPT, commented:
"We are delighted to have acquired such a high quality, well-run
and profitable business with a strong management team. OurIT Group
is an excellent fit because, like AdEPT, it is asset-light,
complements and builds upon AdEPT's existing expertise and skills,
and further extends the product and service portfolio by adding IT
services. With the increasing convergence between telecoms and IT,
this is an important step forward in our strategy to become a fully
managed service provider. OurIT Group has a well-developed customer
base with long term relationships across a range of medium and
large enterprises. The acquisition is expected to be earnings
enhancing from completion."
For more information please contact:
AdEPT Telecom Plc
Roger Wilson, Chairman 07786 111 535
Ian Fishwick, Chief Executive 01892 550 225
John Swaite, Finance Director 01892 550 243
Northland Capital Partners Limited
Nominated Adviser
Edward Hutton/Gerry Beaney
Broking
John Howes 020 3861 6625
About AdEPT Telecom plc:
AdEPT Telecom plc is one of the UK's leading independent
providers of unified communications solutions. The Company provides
a complete communications portfolio of fixed line calls, line
rental, mobile, IP telephony, equipment installation, managed
services, IT services, Wi-Fi, IT and communications hardware and
data connectivity products. AdEPT's tailored services are used by
thousands of customers across the UK and are brought together
through the strategic relationships with tier-1 suppliers such as
BT Openreach, Vodafone, Virgin Media, Avaya, Microsoft, Dell and
Apple.
AdEPT is listed on the London Stock Exchange (Ticker: ADT). For
further information please visit: www.adept-telecom.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCDLLFBDLFZBBL
(END) Dow Jones Newswires
February 03, 2017 02:00 ET (07:00 GMT)
Adept Technology (LSE:ADT)
Historical Stock Chart
From May 2024 to Jun 2024
Adept Technology (LSE:ADT)
Historical Stock Chart
From Jun 2023 to Jun 2024
