Midas' merger lookout

Telecom company plans further acquisitions during 2008

Midas Telecom has merged with Bristol-based reseller Alliance Communications and is planning more acquisitions in the coming months.

Both companies will now be based in the south west. They will continue to trade in the area as Alliance and in the rest of the UK as AMI Solutions. Midas will continue to trade independently in mainland Europe.

Midas founder Chris Clark claimed he is in negotiations to acquire two IT companies and plans to acquire a further six or seven companies over the next 18 months.

Clark said: “Partnering with a regional company distinguishes us from larger telecoms companies. We are consequently able to offer enterprise customers a much more detailed and focused service.”

Alliance’s business is divided evenly between voice over IP (VoIP) and traditional telephony services. Director Miles Watson said: “The market will move more to VoIP over time when broadband connectivity becomes a much more robust service and it is not so prohibitive in terms of expense.”

Peter Gradwell, chief executive of Gradwell Dot Com, another telecoms firm based in the south west, said: “If anything, this merger means Alliance will be less nimble and less able to keep up. But our customers do not clash with theirs much.”