Released: 23/10/2007
RNS Number:1719G
Spiritel PLC
23 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 to
announce the acquisition of tdotcom Ltd ("tdotcom") for a total consideration of
up to £260,000.
tdotcom is an award winning supplier of voice and data systems and solutions to
business customers across the UK. In the financial year to 30 September 2007
tdotcom recorded revenues of £706,000 and a net loss of £98,000. At 30 September
2007 tdotcom had estimated net liabilities of £250,000.
Spiritel intends to fully integrate the business of tdotcom within its existing
operations. This will substantially reduce overheads and restore tdotcom to
significant profitability. It is expected that the transaction will be earnings
enhancing to Spiritel within six weeks. tdotcom is primarily a reseller of Mitel
equipment 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 Business
division. The deal brings with it over 50 new customers, including BBC
Worldwide, The City of London and The Barbican. tdotcom was also the first
company in the UK to sell Mitel's next generation dealer board solution to
financial services customers. We expect the infrastructure and sales capability
of our existing business to quickly grow revenues in this area. The rapid
integration of tdotcom into Spiritel Business will enable it to cross sell other
Group products and services to tdotcom customers including voice, broadband,
WiFi and line rental.
The consideration for the acquisition is being satisfied by the payment, on
completion, of £40,000 in cash, a deferred cash consideration of £70,000, plus a
further £150,000 in cash payable in equal instalments after six, twelve and
eighteen 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 strategic
relationship with Mitel and is a great opportunity to quickly add additional
customers and profits to our Business division. The transaction builds on our
recent success through the acquisition of complementary businesses which deliver
scale and organic growth opportunities from cross selling. It is typical of the
type of transactions that we are pursuing where the acquired companies will
quickly make a positive contribution to earnings."
For further information please visit www.spiritelplc.com or contact:
Spiritel plc Tavistock Communications Landsbanki Securities
Alastair Mills Simon Hudson Sindre Ottesen
Chief Executive Clemmie Carr Sebastian Jones
Tel : +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 the
opportunities created by rapidly changing telecoms markets in the UK as the
migration to Internet Protocol (IP) based delivery accelerates. The Group is a
consolidator of the highly fragmented UK telecoms reseller market and aims to
build a substantial customer base and scale through selective acquisitions. We
are organised into two divisions, Spiritel Technologies - which focuses on our
infrastructure and IP products and services - and Spiritel Business which
provides our customer services.
Today, the Group offers a broad range of telecommunications services and
products to a customer base of small and medium sized enterprises and an
increasing number of larger national organisations. We are a leader in the
provision of new, but proven, Voice over IP (VoIP) solutions that are firmly
based 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
END
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