08:00 Wed 02 Aug 2017
AdEPT Telecom plc - £7.3m BGF funding and Atomwide acquisition
("AdEPT" or the "Company")
NEW CONVERTIBLE LOAN INSTRUMENT
·
· Conversion price
Proceeds of BGF investment, plus existing bank facility to be used to acquire
The proceeds from the convertible loan instrument, plus
The loan instrument is convertible into ordinary 10p shares in the Company at a price of
"Following their initial equity investment in AdEPT during 2016 we are delighted to have obtained further support from the team at BGF to work alongside our existing debt providers, Barclays and The Royal Bank of Scotland, and provide funding for the acquisition of Atomwide. This gives us the market leading position in IT for education in
ACQUISITION OF ATOMWIDE LIMITED
Acquisition highlights
· Initial consideration of
· Expected to be earnings enhancing from completion
· AdEPT group revenue run rate anticipated to increase by approximately 19%
· Long term relationship and key technology partner for London Grid for Learning
· Customers include 4,000+ schools with over 2 million users
· Highly complementary product set for telecommunication and IT convergence
· Atomwide own the IPR for their education applications which are hosted on-site at its data centre in Orpington
· Highly experienced senior management team to remain with Atomwide
Strategic rationale
The acquisition of Atomwide positions AdEPT as the leading IT provider to schools across
Atomwide offers its clients outsourced managed IT and telecoms solutions focused on the education sector. The acquisition of Atomwide further extends AdEPT's ability to provide a full suite of specialised IT and telecoms products to public sector customers.
AdEPT and Atomwide have both focused on recurring revenue and capital asset light strategies which are highly cash generative. Nearly 80% of Atomwide revenues and gross margin are from recurring products and services.
Information on Atomwide
Atomwide, founded in 1987, is a highly accredited IT services provider with over 30 years experience, offering highly specialised IT support services and technology solutions to approximately 2 million users in over 4,000 schools.
Atomwide is the chief technology partner for London Grid for Learning, supplying IT services to around 3,000 schools in
All of the senior management team which are responsible for the strategic direction, technical development and the day-to-day operations of Atomwide are to be retained within the business post-acquisition.
The statutory accounts of Atomwide for the year ended
Consideration
Initial consideration for the Acquisition is
"We are delighted to have acquired such a high quality, well-run and profitable business with a strong management team. Atomwide is an excellent fit because it gives us a strong market position in IT for education, particularly in
This announcement contains inside information.
For more information please contact:
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07786 111 535 01892 550 225 01892 550 243
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Nominated Adviser
Broking |
020 3861 6625 |
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