Maintel has diversified its revenue base and increased its presence in new markets following the acquisition of Datapoint's UK and Ireland operations for £3.5m in cash. 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 while 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."
The Datapoint UK&I 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.
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 three 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.