SpiriTel’s latest acquisition to give it the Edge

The acquisition of Edge represents a significant step in SpiriTel's 'Acquire, Integrate and Grow' strategy

Acquisitive telecoms reseller SpiriTel has made its seventh acquisition in three years, snapping up rival Edge Solutions in a deal worth at least £3.6m.

Alternative Investment Market-listed SpiriTel’s buy-and-build strategy pushed its revenues up 18 per cent to £19.7m in its financial year to 30 April.

London-based Edge boasts a turnover of £5.5m and serves 200 customers with an average monthly spend of £2,000.

As with its previous acquisitions, Edge will be integrated into Mitel partner SpiriTel’s Business Division. The majority of the London-based firm’s sales are recurring in nature, which SpiriTel said would boost its earnings visibility.

The deal is made up of £3.6m upon completion and up to a further £5.7m payable in 2011 in performance-related earn-out payments.

Meanwhile, SpiriTel – which saw 2009 turnover rise 18 per cent to £19.7m – has announced a loan note issue that is expected to raise a total of £10m. It plans to use the new funds to continue its acquisition strategy in the fragment telecoms reseller sector.

SpiriTel chief executive, Alastair Mills, said: “The acquisition of Edge represents a significant step in our 'Acquire, Integrate and Grow' strategy. We have a track record in successful acquisition and integration and the delivery of organic growth from cross selling our converged product portfolio.”

Edge managing director Steve Burgess, who will now head up SpiriTel’s Networks line of business, said: “This is a very exciting development for Edge staff and customers. SpiriTel is recognised as a leading provider of integrated communications services for business customers and we are looking forward to building on Edge's recent success alongside such a well established and respected B2B service provider.”