NOTTINGHAM, ENGLAND, February 09, 2010
/24-7PressRelease/ -- Daisy Group plc ("Daisy" or the "Company"), a leading provider of integrated voice and data services to small-medium businesses, announces that it has acquired the entire issued share capital of Managed Communications Limited ("Managed Communications"), a provider of data networks, for a potential initial cash consideration of GBP6.3m.
The initial consideration of GBP6.3m is subject to adjustment (up or down) once Managed Communications' EBIT and cash position at completion and churn in the 6 months following completion has been determined. GBP4.65m will be paid on completion with a further amount currently estimated at GBP1.66m to be paid after 6 months, subject to finalised completion accounts.
In addition, an earn-out consideration is payable in 2011 based on the earnings before interest and tax performance of Managed Communications for the 12 month period from 1 August 2010 to 31 July 2011. All consideration payable will be satisfied in cash.
Based in Nottingham, Managed Communications provides data networks through
bonded ADSL and SDSL lines to its base of approximately 800 SME customers. With search engine optimisation tools, the company sells internet access, VPN, managed security, email and managed bandwidth solutions through its Managed Communications site and VPN services through its VPN site.
As a lower cost alternative to
leased lines, bonded DSL is a popular choice for smaller businesses, is a higher margin product and typically enjoys contracts of 3 to 5 years. The success of the offering to date gives the management team confidence that Managed Communications' products could answer the needs of the bottom 25% of the leased line market. In the year ended 31 December 2009, Managed Communications' unaudited management accounts show that the company generated adjusted revenue of GBP3.8m and EBITDA of GBP1.6m. Managed Communications is expected to have GBP1.1m of cash at completion.
Matthew Riley, Chief Executive Officer of Daisy, said,
"Strategically this is the right acquisition for us as we move forward into a data rich and more converged world. The combination of Managed Communications and their product offering, with Daisy's sales force and SME customer base, creates cross-selling potential and the opportunity for margin improvement.
Through this acquisition, we have strengthened our data offering, increased our range of services and will be able to provide our SME customers with more of what they want."
Based in Nottingham, Managed Communications provides data networks through bonded ADSL and SDSL lines to its base of approximately 800 SME customers. With search engine optimisation tools, the company sells internet access, VPN, managed security, email and managed bandwidth solutions through its Managed Communications site and VPN services through its VPN site.
Website:
http://www.managedcomms.co.uk/---
Press release service and press release distribution provided by http://www.24-7pressrelease.com# # #
Press Release Keywords:Read more Press Releases from Thomas Mason:Other Press Release Headlines:
