AdEPT Telecom Plc - Appointed Advisor 2003
AIM listed AdEPT Telecom has become one of the UK’s leading independent providers of voice and data telecommunications solutions through a series of acquisitions. The company has developed strategic relationships with tier-1 carriers and provides telecoms services to thousands of residential and business customers across the UK.
In June 2006 AdEPT acquired Fizz Telecom a leading independent provider of telecommunications services and landline calls, which added over 15,000 business customers in two transactions for a consideration totalling £4.5m. The additional 15,000 customers expanded the AdEPT customer base from 5,000 to over 20,000 business customers and provided significant opportunities to cross-sell additional products.
The acquisition of Telecom Direct in November 2007, one of the oldest independent fixed line telecom resellers in the UK, was a very significant transaction as it immediately changed the scale and profitability of the company’s business. Funded by a mixture of cash and bank debt, the deal was structured with a cash payment of £5 million on completion, £0.4 million deferred for six months, and the balance of £1 million payable after 12 months.
Telecom Direct provides voice telephone services to 5,500 business customers. In the year ending March 2007, Telecom Direct generated revenues of £13 million and profits before tax of £0.2 million. The acquisition of Telecom Direct increased AdEPT’s turnover by over 60% per annum, making the Company one of the largest fixed-line reseller’s in the UK.
"We have been long term sponsors of the maximum exit programme and have been delighted with the value and opportunities it has delivered to us." Ian Fishwick, MD of AdEPT Telecom Plc