9/29/2010 12:48:00 PM
SpiriTel on the acquisition trail
SpiriTel is targeting larger acquisitions in an increasingly aggressive drive into the converged solutions space.
Speaking to Mobile, SpiriTel chief executive Alastair Mills (pictured) said the company is looking at several acquisitions, which could even include buying a company ‘much larger than [SpiriTel]’.
SpiriTel’s combined strategy of acquisition and organic growth has seen the company’s business division, which consists of mobile, fixed line and IP services, expand rapidly.
Reporting its results this week, the group revealed revenue of £21.3m – 6% ahead of expectations – and EBITDA 7% ahead of estimates at £1.6m. Most of this growth lies in the business division, where revenues were up 71% to £17.7m and underlying EBITDA up 70% to £3.1m.
SpiriTel’s acquisition drive is backed by funding from equity investor Penta Group and Clydesdale Bank. Mills looks at around two potential acquisitions each week, and claims to regularly receive approaches from mobile, IP and fixed lines firms interested in selling.
SpiriTel’s mobile connections were recently swelled by its latest acquisition, Housing Communications Limited (HCL), in May. The Shropshire based mobile reseller, which centres on the Housing Association market, brought over 15,000 mobile connections to the Group’s mobile business.
SpiriTel aims to cross sell into HCL’s customer base. Mills said: ‘That’s what our strategy is all about – cross selling mobile, networks and IP services to existing and acquired customers. This strategy of providing a complete business communications portfolio to our customers has generated significant organic growth of around 15%.’
Responding to industry rumours that SpiriTel may become an acquisition target, he said: ‘I would be disappointed if there was not some financial interest in SpiriTel. In a rapidly consolidating market you have to keep eating or be eaten, but we want to keep eating. We have a machine that really works and there is no reason to exit right now.’