M&A Managed Buy and Build Programme


BNS is a Newcastle based voice-over IP telecoms carrier and reseller of fixed and mobile lines, minutes, data and hardware, and other value-added services. The business was committed to its strategy and value proposition to the SME and corporate sector, with a new objective to expand operations through indirect channels and increase profits through productivity gains.

Advice, planning and preparation

Evolution Capital was appointed in 2003 to compliment organic growth with an M&A programme. Following a Strategic Review BNS acquired a number of strategic targets including Modus Telecom and XAL to extend their core services to business in the UK.

The challenge

Modus provided entry into the enterprise sector, adding a number of prestigious customers, including American Express.  XAL provided BNS an entry into the European market offering a prepaid telephony platform to carriers, partners and resellers in Europe.

In the year ending July 2009, BNS recorded sales of £37m and underlying EBITDA of £3.2m. In a deal agreed with Daisy Telecom, the shareholders exited in 2010 at a price of 20 pence per BNS Share, valuing the fully diluted ordinary share capital at approximately £10.45m.

Successful outcomes

"We have been clients of Evolution Capital for over two years and they brought us two great deals within the first six months. Wefind their advice and market intelligence to be of enormous benefit as is their expertise in helping us with the acquisition process." Garry Moat,CEO of BNS Telecom Group Plc