Acquisition of Intrinsic Technology Limited

RNS Number : 7165M

Maintel Holdings PLC

01 August 2017

 

Maintel Holdings Plc

("Maintel" or the "Company")

Acquisition of Intrinsic Technology Limited

Maintel Holdings Plc, the fast growing provider of managed communications, is pleased to announce the acquisition of the entire issued share capital of Intrinsic Technology Limited ("Intrinsic") for a total consideration of £5.25 million on a cash-free, debt-free basis (the "Acquisition").

Highlights:

·      Intrinsic enables and manages secure intelligent communications solutions for UK business customers, predominantly medium to large size enterprises and public sector organisations

·     Intrinsic adds strong capability in Cisco through its Gold Partner status, and increases Maintel's expertise in the fast growing network security sector

·      Intrinsic is expected to be breakeven at the EBITDA level for the remainder of Maintel's current financial year

·      With identified synergies, it is expected to generate positive EBITDA and be earnings enhancing in the financial year to December 2018

Eddie Buxton, CEO of Maintel, commented:

"The acquisition of Intrinsic makes compelling strategic and financial logic for our shareholders. Intrinsic has an enviable track record as one of the UK's leading Cisco partners and significantly enhances Maintel's strong capability in networking. As well as further broadening our Avaya capabilities, the acquisition also brings the opportunity to offer Maintel's existing portfolio to Intrinsic customers, in particular our ICON suite of cloud and managed services".

Maintel intends to report Interim results for the six months ending 30 June 2017 on 11 September 2017.

Enquiries:

Maintel Holdings Plc

Eddie Buxton                                                                 0344 871 1122

Mark Townsend

finnCap Ltd

Jonny Franklin-Adams / Emily Watts                               020 7220 0500

Consideration

The consideration for the Acquisition is a total of £5.25 million payable in cash on a cash-free, debt-free basis and will be funded by an extension to, and draw-down under, the Company's existing Revolving Credit Facility with RBS (the "RCF"). The RCF, originally secured in April 2016 has been increased by £6 million to £42 million.

About Intrinsic

Intrinsic enables and manages secure intelligent communications solutions for UK business customers, predominantly medium to large size enterprises and public sector organisations.

Intrinsic works with industry leading software suppliers, hardware companies and communications vendors such as; Cisco, Avaya, Fortinet, Gamma, Citrix, NetApp, VMWare and Microsoft.  

For the 12 months to May 2017, Intrinsic's adjusted^* loss before tax was approximately £550,000.

* Unaudited, excluding goodwill and other exceptionals

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

 

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