Fixed line provider Spiritel has bought B2B mobile dealer WN1 for just over £2 million.
WN1 is an O2 Advance Partner, T-Mobile Business Partner and a Blackberry Alliance Member. Its customer books include Lufthansa, Servisair and Topps Tiles.
The acquisition broadens Spiritel’s portfolio to encompass fixed line voice and broadband, hosted VoIP, PBX solutions and mobile.
Spiritel paid £1.47 million in cash and £0.55 million dependent on the performance through May 2009 of WN1, to be rebranded Spiritel Mobile. Last year, WN1 reported revenues of £2.25 million and operating profits of £0.6 million. It will be relocated to Spiritel’s Wigan headquarters.
The initial cash payment for WN1 is financed by an increase to Spiritel’s senior debt facility with Clydesdale Bank. It is Spiritel’s fifth acquisition in 18 months.
Spiritel chief executive Alastair Mills (pictured, middle, with Wigan striker Emile Heskey, left, and WN1 managing director Darren Hailliwell) said:
“WN1 is a strategic and highly profitable acquisition that allows us to complete our business communications offering by adding mobile voice and data services. WN1 has an impressive track record of revenue and profit growth and the incremental earnings will further enhance our recently reported turnaround in financial performance.”
He added: “The acquisition supports our strategy of cross selling additional products to our customer base, increasing customer spend, reducing churn and thereby driving our organic growth. WN1 has a particularly strong performance in sales of converged Blackberry solutions to business customers and we look forward to offering WN1’s full range of mobile voice and data services to Spiritel’s existing customers.”