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AdEPT Telecom acquires IT services provider Shift F7 for up to £7.9mln

The acquisition further expands AdEPT’s commercial IT capability and customer base, whilst maintaining the geographical focus on London and the south east

phone lines
Shift F7 supplies businesses in and around with their internet, phone lines and things of that nature

AdEPT Telecom PLC (LON:ADT) has acquired fellow information technology services provider Shift F7 in a deal worth up to £7.9mln.

Surrey-based Shift offers its clients outsourced managed IT and telecoms solutions, including IT support, hosted IT, cyber-security, data connectivity and next-generation IP telephony services.

AdEPT said the acquisition further expands its commercial IT capability and customer base, whilst maintaining the geographical focus on London and the south-east.

READ: AdEPT surpasses recently raised expectations

“We are delighted to have acquired such a high quality, well-run and profitable business with a strong management team,” said chief executive Ian Fishwick.

“Shift F7 is an excellent fit because it enhances our market position in IT, particularly in London.

“Shift F7 complements our acquisition of OurIT in February 2017 which is also focused on London and South East commercial customers.”

AdEPT is paying £5mln upfront, plus up to a further £2.9mln in performance milestones over the next 12 months.

The plan is to keep Shift’s management in place on completion of the takeover, which is expected to be immediately earnings-enhancing. AdEPT estimates its annualised group revenue run rate is anticipated to increase by approximately 10% as a result of the new addition.

In the year ended May 31 2018, Shift F7 generated underlying earnings of £0.7mln on revenue of £5.0mln.

In a separate statement, AdEPT confirmed chief executive Ian Fishwick had bought another £38,000 worth of shares to take his total holding to 3%.

Shares rose 6.8% to 377p.

-- Updates with additional info and share price --

Quick facts: AdEPT Technology Group PLC

Price: 333 GBX

LSE:ADT
Market: LSE
Market Cap: £78.93 m
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