Northland Capital Partners Analyst Mike Jeremy caught up with DirectorsTalk for an exclusive interview to discuss AdEPT Telecom plc (LON:ADT)
Q1: Now, we’re talking about AdEPT Telecom today who announced the acquisition of Our IT Group. Mike, what’s the rationale for the acquisition?
A1: ‘Our IT’ specialises in software provision, managed services or so forth which are the kind of things companies taking on a unified telecoms service increasingly require. The lineation between provision of straight telecom services, voice, data and so forth and the kind of more sophisticated back-up that companies’ clients require is really disappearing. AdEPT has long appreciated this, the strategy has been to move into unified communications as defined and so this group really adds a huge skill set that compliments what AdEPT already provides and amplifies that strategy.
Q2: So, what is the potential arising from the new debt facility?
A2: The previous facility was for £15 million on a revolving credit basis, the new facility which is provided by 2 banks, Barclays Bank and Royal Bank of Scotland, is for a total of £30 million. This clearly indicates the ambition and scope and based on earnings, in fact, the ability of AdEPT to support further acquisitions as it has indicated and possibly to deepen and broaden the scale of that activity is increased accordingly. So, it’s built upon a strong track record, it’s I think a natural progression and it follows on what I would actually go as far to say is a step change in the level of activity and the ability of AdEPT Telecom to attract clients that the acquisition today also indicates.