Comms provider Daisy has bought out rival telecoms VAR Network Europe Group (NEG) for £23.5m.
The deal is the latest in a long line of acquisitions carried out by the firm as part of its ongoing buy and build strategy.
NEG specialises in the provision of telephony services and hardware to over 2,000 customers within the healthcare industry.
In the first 10 months of the year, the company achieved revenues of £11.2m and EBITA of £3.4m.
Daisy cited the firm's £7.4m gross assets and the longevity of its existing contracts as key factors in its purchasing decision.
Matthew Riley, chief executive of Daisy, said the deal would allow the firm to tap into new vertical markets and enlarge its customer base.
Riley said: "NEG has a proven track record for organic growth, further potential to grow, and provides the firm with a strong footprint in a market in which we believe we can increase market share further."
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