UPDATE: Daisy buys ATC and Eurotel

Signing on the line: Daisy has made two acquisitions in the same week

Acquisitive telecoms provider Daisy has snapped up AT Communications (ATC) after it succumbed to administration yesterday.

The Lancashire-based company has paid £7m in cash for ATC and has also announced the acquisition of communications reseller Eurotel for £13.5m. See Monday's CRN for the full story.

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ATC issued a statement yesterday revealing the appointment of two administrators. Six weeks ago the company requested an immediate suspension of trading of its shares while its financial situation became clearer.

This followed an announcement at the start of June revealing a major project pencilled in for this year faced sizeable delays. ATC revealed the project had provided about £6m in revenue last year and a statement added: "It would have provided significant cash for debt reduction during the course of the current financial year." At that point ATC began a cost-cutting drive, which included " substantially reducing ongoing staffing levels".

Yesterday's announcement also revealed the company's "nominated adviser and broker " has resigned, effective immediately. If a replacement has not been appointed within a month, trading of ATC securities on the alternative investment market will be cancelled.

Yesterday's statement read: "The board of ATC regrets to announce that, having carefully considered the financial position and prospects of the company, on 3 August 2009 it appointed Malcolm Shierson and David Dunckley of Grant Thornton UK LLP as administrators of the company with immediate effect."

ATC consists of three arms: third-party services firm Servassure, reseller ATC Solutions and Your Network Services, a business providing connectivity services to channel firms. ATC's 2008 turnover reached £98.4m, although £45.5m of that came from distributor Rocom, which was sold to Nimans in March.

ATC also appointed a new chief executive in May, when Scott Kean stepped up from running Servassure to assume overall control. Former top dog Alex Tupman stepped down from the board at that point.