SpiriTel acquires Nessco
Article Date: Mar 19 2010Business telecoms provider SpiriTel has acquired Nessco for an initial cash consideration of £1.2 million. The deal is SpiriTel’s fifth acquisition in as many months.
Under the terms of the acquisition, SpiriTel has agreed to pay £1.2 million in cash on completion and a deferred consideration of £500,000. Performance-related earn-out payments of up to £300,000 may also become payable in cash in 2011.
Based in Bellshill near Glasgow, Nessco is a provider of IP-based telephony solutions and networking services to approximately 800 customers. The company focuses on healthcare, local government and hospitality sectors and customers include NHS Highland, Aberdeen City Council and Macdonald Hotels.
Prior to completion of the acquisition, some assets and operations of Nessco were transferred to the vendors. For the year ending March 2009, the acquired operations generated revenues of £3.2 million and pre-tax profits of £200,000.
The acquisition was funded by an extension to SpiriTel's existing debt facility with Clydesdale Bank.
Alastair Mills, chief executive of SpiriTel, says: 'Nessco represents a rare asset, possessing an excellent customer base, a long and successful track record of IP Telephony, specialising in Mitel solutions and supported by a highly skilled engineering team. The company's operations are particularly complementary to SpiriTel's and we are confident of a swift and effective integration into our business division.'
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