Business communications service provider SpiriTel announced the acquisition of the entire issued share capital of Nessco Limited for an initial cash consideration of £1.2m.
The acquisition, SpiriTel’s eleventh since 2006, sees SpiriTel take over…
Business communications service provider SpiriTel announced the acquisition of the entire issued share capital of Nessco Limited for an initial cash consideration of £1.2m.
The acquisition, SpiriTel’s eleventh since 2006, sees SpiriTel take over IP-based telephony solutions and networking services provider Nessco, a telco based near Glasgow. Nessco is said to be especially strong is the healthcare, local government and hospitality sectors, and was established just over 30 years ago.
SpiriTel has agreed to pay £1.2m in cash on completion and deferred consideration of £0.25m after nine months and £0.25m after 18 months. Performance related earn-out payments of up to £0.3m may also become payable in cash in November 2011.
The estimated value of the Nessco net assets acquired was approximately £0.1m as at March 31, 2009. In the year then-ended, the acquired operations generated revenues of £3.2m, EBITDA of £0.2m and a loss before tax of £0.05m.
The acquisition was funded by an extension to SpiriTel’s existing debt facility with Clydesdale Bank.
The acquisition is expected to be immediately earnings enhancing.