AIM-listed AdEPT has enlarged its banking facility agreement in order to pursue its M&A strategy.
The IT and telecoms provider – which counts Cisco, Microsoft and 8×8 among its vendor partners – has signed the banking agreement with NatWest and Bank of Ireland and will use its new war chest to acquire up to two companies per year as part of its ambitions to “consolidate a fragmented market”, according to a trading update to the London Stock Exchange.
The agreement is a three-year term, with the possibility of extending it for a further year and provides AdEPT with up to £70m senior debt, comprising a ££5m revolving credit facility, a £15m term loan and a £20m accordion facility. This agreement replaces the existing £40m revolving credit facility which was due to expire early next year.
“With over 50 per cent of the UK adult population now vaccinated and the Government implementing its roadmap out of lockdown, we feel more optimistic about the future of the UK economy and what this means for our business,” stated Ian Fishwick, Chairman of AdEPT.
“We believe that the pandemic has served to reinforce the importance of our core competencies and that there is increasing demand for the solutions we provide.
“The new financial year presents new growth opportunities for the group, both organic and via acquisition, as we look to capitalise on the opportunities of a growing market, accelerated by the change brought about by the pandemic.”
Elsewhere in the update, the company reported that it was “pleased” with its results for the year ending 31 March 2021, which will be released later this year. AdEPT is optimistic about the year ahead as organisations now evaluate the impacts of the pandemic on their business and assessing the long-term requirements of their operations, including integrated cloud-centric technologies, streamlined contact centres and secure ICT platforms.
“The major story of the last 12 months has been the dramatic acceleration in home working and the resultant impact on the ability of our customers’ workforce to securely access their technology infrastructure remotely,” Fishwick added.
“Change brings transformation in thinking and behaviour and, in FY21, AdEPT has proven its ability to deliver transformational solutions and support its customers, enabling them to adapt and perform under exceptional circumstances.”
