Kingston Communications last week agreed conditionally to acquire integrator Omnetica for £169m in a bid to expand its service offering in the UK voice and data services market.
The deal is subject to shareholder approval on 20 December. If agreed, it will combine Kingston's carrier and enterprise services with Omnetica's enterprise data and IP networking skills.
Gary King, managing director of business services at Kingston, said it is "too early" to say if the Omnetica brand will remain.
"This acquisition will give [Kingston] good end-to-end service capabilities and wider market coverage. We are strong in the local government and emergency services sectors and retail finance, whereas Omnetica is strong in financial services and the health side of the public sector, so there is very little overlap."
Peter Halls, chief executive of Omnetica, who will join Kingston's board as an executive director, said: "We weren't looking for a buyer; Kingston approached us. It had the telco skills, but wanted LAN skills. We wanted telco skills. This move was an obvious answer to both our problems."
Rachel Power, analyst at Canalys, said: "Omnetica has traditionally been stronger in data, and Kingston is experienced in voice, so it makes sense for the two to come together. This demonstrates that convergence is starting to happen."
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