PRESS RELEASE: Owner-operated Elitetele.com PLC, a leading provider of unified communications, has agreed its largest acquisition to date, Leeds-based communications solutions provider Nexus Telecommunications Limited. The acquisition is Elite’s 15th since 2008, all of which have been funded through internal cashflows and conservative leverage with no outside investors.
Post completion, the newly enlarged Elite will have revenue in excess of £50m with underlying EBITDA of over £8m, representing growth of 37% and 43% over Elite’s FY7/16 results. The group will have in excess of 165 staff across seven locations, with Nexus contributing £16m revenue and 35 staff. The deal extends Elite’s customer base and geographic presence with the addition of Nexus Telecommunications’ Leeds office. Nexus will be rebranded as Elitetele.com.
Elite’s Founder and CEO, Matt Newing, says, “We’re delighted with the acquisition of Nexus Telecommunications. Nexus has a great reputation in the industry and is a perfect complement for Elite. We share a similar high-service culture, and we believe the combination of our two companies’ unified comms and IT products and services will deliver the strongest client offering in the industry.”
“Nexus has some bespoke service wrap solutions to meet individual customer requirements that Elitetele.com will offer to our wider customer base, that focus on corporate and enterprise clients. Its great customer base is backed by a strong team of people who we’re really happy to welcome to the Elite Group. We look forward to working with them to deliver the best customer experience in the industry,” says Newing.
Rob Sims, CEO, Nexus Telecommunications, who is staying on with the business following the acquisition and joining the group leadership team, says, “Nexus’ culture of service excellence, flexibility and customer choice make us a great fit with Elitetele.com. Our customers will benefit from Elite’s wide range of services, including hosted IT services, PCI Compliance, SIP services, phone systems and numbering services, which will complement the Nexus offering, giving our customers even better service. ”
Elite’s internal M&A team and internal legal counsel completed the acquisition. Gareth McIntegart, Elite’s Legal Counsel provided legal advice, working alongside Russell Horton, COO; Rob Burbidge, Finance Director; Alex Cliffe, Commercial Director, and Adam Turton, Sales Director. Leveraged finance was provided by the company’s existing lender, Lloyds Banking Group. Financial Due Diligence was undertaken by the Manchester office of Mazars LLP, led by Neil Robinson, Jeremy Booth and Hayley Brightmore. Nexus was represented by Hull Solicitors Gosschalks led by corporate partner Paul Plaxton.
Elite intends to continue to grow by organic and acquisitive means.