SpiriTel toasts ADK acquisition

Acquisition-hungry telecoms VAR SpiriTel has snapped up rival ADK Communications for £1m.

The acquisition is SpiriTel’s eighth in three years, and the 300 ADK customers will bring SpiriTel’s total customer base to 2,800.

SpiriTel hit the headlines yesterday with its acquisition of Edge Solutions, in a deal estimated to be worth £3.6m.

Hertfordshire-based ADK recorded a pre-tax profit of £460,000 for the year to 31 March 2009 on turnover of £6.1m. Its average customer spend is £500 a month.

Under the terms of the deal, SpiriTel will pay £1m in cash on completion with a performance-related earn-out payment of up to £500,000 on the cards in January 2011.

A new release claimed ADK will be “swiftly” integrated into SpiriTel’s Business Division.

Alastair Mills, chief executive of SpiriTel, said: "The acquisition of ADK is another exciting step in our acquisition-led growth strategy. The customer base is a strong fit for SpiriTel and further leverages the operational scale of our Business Division. SpiriTel has an excellent track record in effective acquisition integration and we are confident that ADK will prove a highly profitable addition to our business division."

Alasdair Buckling, director at ADK, said: "We have worked hard to establish a high-quality customer base and believe that in SpiriTel we have found a partner that can provide our customers with the full range of IP-based communications in our rapidly evolving sector. I am delighted to link up with a company such as SpiriTel and I am confident that our customers are in good hands.”