Coms to acquire Redstone subsidiary

5th Nov 2013 11:03

AIM-listed Coms has conditionally agreed to acquire Comunica Holdings, a subsidiary of infrastructure and support services firm Redstone. The £9.5m consideration will be satisfied by an initial payment of £7.65m, funded from Coms's cash resources and a new £2.5m overdraft facility, followed by a deferred consideration of £1.85m, which will be paid one year after the sale and purchase agreement is signed. Dave Breith, the Chief Executive of Coms, said: "This acquisition is earnings enhancing and provides us with the scale we need to further build the Coms group of companies. "It provides us with a significant increase in income generation to fund the enlarged business and also establishes a sound infrastructure, which allows the Coms group to provide an integrated service for our customers from 'telecoms connectivity through to telecoms solutions'." The group also revealed it had identified "significant commercial synergies and cost savings" that can be achieved by amalgamating the businesses under the Coms umbrella, while it said would fundamentally change the dynamics of its business and position it for the next phase of growth."As a result we will achieve a significant uplift in gross profit, access to European markets currently served by Redstone and a significant 'value add' to customers of both businesses," Breith added. NR