Bluebell touts itself as next telecoms consolidator

Newcastle firm uses private equity cash to fund Callstream acquisition as it aims to compete with Daisy and Spiritel

Good call: Callstream claims joining the Bluebell group will allow to continue with its growth plans

Bluebell Telecom Group is aiming to become the latest big player in the telecoms buy and build game after snapping up telephony services firm Callstream.

Over the last five years, Newcastle-based Bluebell has grown annual sales from £1m to £11m. The buy out of Warwickshire-based Callstream is the first deal Bluebell has closed since availing itself of an acquisition war chest from YFM Private Equity, Octopus Investments and NatWest.

Callstream will become the first company Bluebell has bought that will retain its brand name and autonomous operations. Founder Mark Drury will remain in charge and also joins Bluebell's board of directors.

“Joining the Bluebell Telecom Group gives us the opportunity to continue our strategy of growth, whilst delivering the same high-quality of service to our current clients,” said Drury.

Bluebell claims the buyout will provide it with an extended "blue-chip customer base". Director Michael Smith said his firm wants to compete with the market's biggest consolidation players.

“Large and medium-sized businesses increasingly want to appoint a single communications provider with the experience, capability and track record of delivering all their voice and data requirements," he explained.

“We represent an alternative option to vendors that might be considering an exit to the likes of Spiritel or Daisy. We are dedicated to investing in solid companies and working closely with them on an ongoing basis, rather than merely acquiring and absorbing customer bases."