SpiriTel’s £2.1 million acquisition last month of mobile voice and data reseller Housing Communications Limited (HCL) is its twelfth since 2006 and its sixth in seven months.
The deal follows recent acquisitions in Wales and Scotland, which has expanded the firm’s geographical coverage.
Of the total fee, £1.6 million is payable in cash on completion with the remainder comprising the settlement of directors’ loans from cash within the business. After completion, it is expected the company will hold cash balances of £150,000.
HCL is based in Shrewsbury, Shropshire, and was established in 1998. It has an exclusive contract with procurement agency Procurement For Housing, which has over 1,000 housing association members.
It has around 100 customers overall, with over 17,000 mobile connections.
In the year to September 30, 2009, it achieved revenues of £2.9 million and pre-tax profit of £463,000.
To date HCL has concentrated on selling just mobile solutions. SpiriTel, which will integrate the business into its Business Division, said the company’s customer base represents a cross-selling opportunity for its ‘Complete Business Communications’ offering.
SpiriTel chief Alastair Mills (pictured) said: “HCL fits well with our acquisition strategy as a large, well established mobile base with high potential for cross selling, particularly to its large housing association customers.
“I am pleased to report the integration of recent acquisitions has progressed well and is now almost complete. The acquired companies have also performed in line with management expectations and after planned restructuring costs, have delivered strong contributions to earnings.”
HCL managing director John Clarke said: “Over a 12-year period, we have worked hard to establish HCL as the leading provider of mobile solutions to the housing association community. As our customers increasingly look for a service provider with the full range of voice and data solutions, SpiriTel is well positioned to capitalise on this exciting opportunity.”