5/22/2008 10:59:00 AM
Fone Logistics eyes up a second acquisition
Fone Logistics is understood to be lining up a second distribution acquisition, after taking on Dextra’s airtime business this week.
Mobile understands that the Northumberland-based company wants to increase its scale and lead consolidation in the airtime sector.
The identity of the second acquisition target is not known, but early negotiations are understood to be progressing quickly.
Mobiletoday.co.uk exclusively revealed that a deal had been agreed for Fone Logistics to take ownership of Dextra Airtime last Friday (16 May).
No money will be handed over to Dextra’s private equity owner, Doughty Hanson; instead an ‘earn-out’ will be paid in around two years’ time, based on a percentage of the commissions generated from Dextra’s airtime business.
The deal between the two businesses is believed to have been brokered between Dextra CEO James Browning and Fone Logisitics’ commercial director Michael Fitzpatrick, with MD Ian Gillespie entering at a later stage along with representatives from Doughty Hanson.
The Dextra brand will be dropped and Doughty Hanson is keeping the Dextra accessories division ahead of merging it with the 20:20 handset operation.
Fone Logistics will not officially take over the Dextra dealers until 1 July and expects to transfer virtually all of the dealers to its books.
Crewe-based Dextra’s airtime business employs around 25 staff, including back-office personnel. The company said it will use Dextra’s sales team.
Mobile understands redundancies are likely from Dextra’s back office, but the company wasn't able to comment.