Further growth for Tunbridge Wells telecoms firm
Law firm Cripps has advised on a multi-million pound deal that will see a successful Tunbridge Wells business strengthen its position as one of the UK’s leading independent telecoms companies.
AdEPT, which specialises in the provision of a range of communications products including lines, calls, data, mobile and broadband services, has bought Hampshire-based Centrix, a specialist provider of technology and communications services.
The deal, which is worth up to £12.5m, saw law firm Cripps handle the legal aspects of the transaction for AdEPT. In April, Cripps also helped AdEPT negotiate a new £15m credit facility with Barclays Bank, paving the way for the purchase of Centrix.
AdEPT chief executive Ian Fishwick said: “We are delighted to have acquired such a high quality, well-run and profitable business with a strong management team. Centrix is an excellent fit because, like AdEPT, it is asset-light, complements and builds upon AdEPT’s existing expertise and skills, and further extends the services we can offer.
“This is the fourth deal that Cripps has advised us on in the past three years and their input has been invaluable. We have a good relationship with the corporate team at Cripps and I look forward to working with their lawyers in future as we continue to expand the company.”
The acquisition will see AdEPT pay an initial sum of £7m plus the cash balance of Centrix at completion. Further consideration of up to £3.5m may be payable in cash dependent upon the trading performance of Centrix post-acquisition. The deal will add some 30 per cent to the AdEPT’s turnover and substantially increase ongoing profits.
Nigel Stanford, who led the Cripps team of solicitors, added: “We were delighted to be working alongside AdEPT again as it further cemented its role as a leading telecoms provider.
“AdEPT has a strong management team, a clear vision of how of how it wishes to grow and the resources to achieve that ambition.”
The audited accounts of Centrix for the year ended 31 December 2014 reported turnover, operating profit and pre-tax profit of £8.75m, £2.26m and £2.26m respectively.