Fone Logistics is set to acquire the Dextra airtime business next week.
A deal has been agreed between both parties, although nothing has been signed as yet.
The Northumberland-based distributor will take ownership of Dextra Airtime at no cost, but will pay Dextra an ‘earn-out’ in around two years based on a percentage of the commissions Fone Logistics generates from the Dextra business.
Low-key talks were underway for several months between James Browning, CEO of Dextra, and Michael Fitzpatrick, commercial director at Fone Logistics.
Fone Logistics MD Ian Gillespie entered talks at a late stage and a deal was presented to Dextra’s private equity owners, Doughty Hanson, in recent weeks.
Crewe-based Dextra's airtime business employs around 25 staff, including back-office personnel. Fone Logistics confirmed that it would merge Dextra’s sales team into its own, but added: ‘Back-office functions and support will be managed from Fone Logistics’ head office in Cramlington.’
Fone Logistics is also expected to drop the Dextra brand as it look to build share of the airtime market by increasing its scale to punch its weight with market leaders Avenir and Hugh Symons.
The company said in a statement: ‘Fone Logistics and Dextra today can announce they have agreed in principle the terms of a Fone Logistics led joint venture (JV) for airtime distribution, bringing the two businesses into a single trading entity, run and managed by Fone Logistics.
Subject to an agreement being reached Fone Logistics would conclude the back-office management transfer with a target completion date of the end of June.