AdEPT Telecom, the company known as one of the leading independent providers of IT managed services and unified communications in the UK, recently signed a convertible loan agreement of £7.3 million with Business Growth Fund (BGF).
The proceeds obtained from the convertible loan instrument will be combined with £4.7 million from their existing bank facility to help fund the acquisition of the new company "Atomwide Limited". The loan is convertible into typical 10p shares within the company at a price of around £3.93.
An Exciting New Acquisition for AdEPT
Following the initial investment of equity into AdEPT during 2016, BGF provided even further funding alongside the company's existing debt providers, The Royal Bank of Scotland and Barclays. AdEPT now has enough money to facilitate the purchase of Atomwide, and become a leading force for IT education in London.
The AdEPT board also announced that it has recently signed an agreement which will take effect from the 1st of August 2017, to acquire the complete offered share capital for Atomwide. The highlights from the acquisition include:
- Enhanced earnings from the completion
- Increased AdEPT group revenue run-rate of around 19%
- Long-term technology partnership for London Grid for Learning
- Customers from over 4,000 schools and 2 million users
- Highly complementary product portfolio
- Experienced senior management team
The Strategy Behind the Purchase
The acquisition of Atomwide for AdEPT will help to highlight AdEPT as the leading IT provider for schools throughout London, with support for around 2 million users of Atomwide services and products. Since 1987, Atomwide has offered IT solutions for around 4,000 different UK schools, and local authorities, as well as regional broadband providers.
Currently, Atomwide has more than 50 members of experienced staff, including in-house software development teams. Atomwide offers its clients both outsourced telecoms and IT solutions within the education sector. This new acquisition for AdEPT will further enhance the company's ability to provide a complete suite of specialised telecom and IT products for public sector customers.
