Maintel Holdings Plc Acquires Datapoint companies

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Maintel Holdings Plc, the telecoms and data services company, is pleased to announce the acquisition of Datapoint Customer Solutions Limited, Datapoint Global Services Limited and Datapoint Communications Limited, the UK and Irish trading operations of the Datapoint group of companies (the "Datapoint UKI Companies") (the "Acquisition").
 
Highlights
 

• Acquisition of the Datapoint UKI Companies for £3.5m in cash.
• Acquisition is expected to be earnings accretive for the first full year of ownership to December 2014.
• The Acquisition is a key component of Maintel's strategy to diversify its revenue base and significantly increase its presence in new markets.

 
The Datapoint UKI Companies provide consulting and professional services in Unified Communications to a base of approximately 100 customers, with a particularly strong presence in the contact centre sector. Other services include maintenance and equipment sales. Whilst the core business acquired is UK and Ireland based, some customers have subsidiary operations in other countries, whose service is coordinated from the UK and Ireland operations. The total consideration for the Acquisition is £3.5m.
 
Eddie Buxton, Chief Executive of Maintel, commented:
 
"It has been our long established goal to acquire a complementary asset to add to our growing base of existing revenues. We have been tracking Datapoint's progress for some time, and this acquisition will materially improve the breadth of our product offering whilst also providing clear momentum for the next phase of Maintel's growth. We anticipate the acquisition delivering clear shareholder value over time. The acquisition is expected to be earnings accretive for its first full year of ownership to December 2014"
     
Details of the Acquisition
 
Maintel has paid £1.0m in cash to the Administrator of Point-On Holdings Limited, the parent company of the Datapoint UKI Companies in respect of the Acquisition, and has settled the overdraft of those companies at completion to the sum of £2.5m. This equates to total consideration, excluding any professional fees incurred, of £3.5m. There is no deferred or contingent element to the consideration for the Acquisition.
 
In conjunction with the Acquisition, the Company has secured a £3.0m term loan, repayable over 3 years and a £1.0m overdraft facility.
 
The Datapoint UKI Companies were acquired with no cash and no debt.  The aggregate unaudited revenue of these companies in the year to 30 June 2013 was £15.8m, although it is envisaged that revenues will be approximately £2.5-3.0m lower in the current financial year due to lower levels of non-recurring business and a degree of attrition.
 
Oakley Capital Corporate Finance acted as financial advisors to Maintel on this transaction.