Nimans has bagged rival Rocom for £12.45 million from the ATC Group, presenting 'the opportunity of a lifetime', according to Julian Niman. And Alex Tupman has announced his intention to step down as CEO of the ATC Group.
"The purchase of Rocom, which has its own long-standing and respected pedigree, creates an unbeatable combination and powerful proposition and we are all highly motivated by the potential," said Niman. "It is a new chapter in our history and the start of a momentous era for the telecoms distribution industry."
Both Nimans and Wetherby-based Rocom will retain their branding and customer-facing operations as part of a 'business as usual' strategy. It's also business as usual for the Rocom board members who are delighted with the acquisition and are looking forward to the future.
Niman added: "This acquisition provides the perfect platform for sustained strategic growth for customers giving them access to the full product portfolio across Nimans and Rocom. It represents a real statement of intent and demonstrates our commitment to, and confidence in, the telecoms distribution market. We are a financially secure company with the strength to expand and move further forward."
Niman, along with Nimans' Managing Director Paula Gillings - who played an instrumental role in putting the deal together - also paid tribute to the talent available from both boards of Directors. "We are very much looking forward to capitalising on the exceptional talent, enthusiasm and dedication of both boards which will act as the catalyst for future success," said Gillings.
A mutual agreement has been reached with Rocom's former MD Richard Carter where he will assist as required for up to three months before taking up a new role at ATC Group.
Niman also highlighted the many channel benefits which will be generated following the purchase of Rocom, which now creates a combined business with a turnover approaching £100 million and 400 staff.
Niman concluded: "As there will be less direct competition between the companies we can fully focus on channel development, rather than ‘shifting' the channel where customers can get caught between the two with trapped loyalties. We can concentrate fully on helping dealers develop their businesses further. The ‘best of breed' qualities of both companies will work together for everyone's benefit. For ourselves, suppliers and customers alike this represents tremendous opportunity."
The sale of Rocom enables the ATC Group to sharpen its strategic focus around its two core divisions, Servassure and ATC Solutions, and reduces the dependence on lower margin distribution revenues. Tupman commented: "The £12.45 million consideration significantly reduces the Group's net debt and enables the Group to become a more focused, high margin business, underpinned by strong recurring revenue streams.
"This follows on from our recent trading update, which announced a three year contract win with BT worth several million pounds and a pipeline of new business for our Servassure Division, which is significantly stronger than this time last year and demonstrates the strength of the Group's brand and quality of service. Tthe Board is confident of the Group's long term prospects."
Pictured: The Directors of Nimans and Rocom (L-R), Phil Gee, Financial (Nimans), Phil Hambly, Sales and Marketing (Rocom), Lee Williams, Network Services (Rocom), Phil Adams, Systems Sales (Nimans), Julian Niman, Chairman, Martin Ashby, Purchasing (Nimans), John Cunningham, Logistics and IT (Nimans), Paula Gillings, Managing Director, Alex Lister, Operations (Rocom), Mark Taylor, Commercial (Nimans) and Paul Waterhouse, Financial (Rocom).
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