By Will Sturgeon, 1 March 2004 17:10
NEWS Your Communications, the telecoms arm of United Utilities, has snapped up independent UK telecoms business Eurocall in a deal worth £42m.
United Utilities will stump up £30m in cash immediately and will pay a further £12m in two instalments over the next 18 months to take control of the business, which predominantly serves the UK SME sector.
Among the eye-catching characteristics which will doubtless have impressed Your Communications is the fact that Eurocall is profitable and cash-flow positive with annual revenue of around £55m.
That financial success and a more heavyweight presence among the potential rich pickings of the SME market will enable Your Communications to further cut the apron strings from its parent according to managing director Hugh Logan.
"Your Communications is making good progress towards becoming financially independent. This acquisition strengthens our commitment to the small and medium-sized enterprise market," he said in a statement.
The end product of continued success for Your Communications will likely be some form of exit in the future. Once the business is in a position to offer real value to shareholders United Utilities will consider a "disposal" of the business according to United Utilities CEO John Robert.
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below