OneCom rescues customers from stricken comms VAR
£60m VAR acquires customers from True Telecom, which fell into administration
OneCom has acquired the customer base of True Telecom after the VAR fell into administration at the end of last year.
The £60m comms VAR announced the acquisition today, in a move which will see True Telecom's 3,000 customers move over to OneCom.
According to an adminstrator's report on Companies House, True Telecom's strategy was to build a strong customer base through internal sales teams, and then sell this customer base to another telecoms firm for a multiple of the base's gross profit margin.
The firm operated at a "significant trading loss" with its comms services, but hoped the sales of its customer base would keep the model viable.
However, when one buyer did not make an expected payment of £1.4m, the firm fell into financial uncertainty. In September last year HMRC issued a winding-up petition and administrators were subsequently called in.
Speaking of the deal, OneCom CEO Darren Ridge said: "It is our intention to support True Telecom customers to the very best of our ability in order to provide them with the value and quality of offering that have become synonymous with Onecom over the years.
"Those joining us will immediately benefit from Onecom's award-winning customer service and unified communications expertise."
According to the administrator's report True Telecom reported a turnover of just under £3m in the full year ending September 2016, and a net loss of £275,503.
HMRC is the firm's largest creditor, at £554,516.