Released: 16/10/2006
RNS Number:4881K
Spiritel PLC
16 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 to
announce the earnings-enhancing acquisition of the entire share capital of the
privately held company Networks Direct (UK) Limited.
Networks Direct provides inbound and outbound voice, broadband, wholesale line
rental and non-geographic numbers to more than 300 SMEs, many of which are
professional services firms on long term contracts. In the year to 31 May 2006
Networks Direct had sales of £1.6 million and an operating profit, before
management charges, of £488,000. Net assets as at 31 May 2006 amounted to
approximately £202,000.
The acquisition supports Spiritel's strategic objective of broadening the
Company's routes to market by gaining direct relationships with the end users of
telecoms 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 Spiritel
ordinary 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 be
funded by cash and debt facilities.
Alastair Mills, Spiritel's Chief Executive, commented: "I am delighted to
announce our second transaction so soon after the acquisition of Callplan
Limited in September. This is a significant additional step in the delivery of
our objective of having a direct relationship with the end users of telecoms
products and services."
For further information:
Spiritel plc 020 7160 0100
Alastair Mills, Chief Executive
Buchanan Communications 020 7466 5000
Mark Court
Mary-Jane Johnson
Notes for Editors:
About Spiritel plc
Spiritel plc (AIM: STP) is a telecommunications group that joined the AIM market
of the London Stock Exchange in July 2004. We have multiple routes to market for
our products and services, which include a range of both traditional and
emerging telecoms technologies. Spiritel's client base includes corporate,
wholesale and retail customers served directly through our value added reseller
division 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
END
ACQFFDEFISMSEES