Midwich acquires Nimans for £27.5m

Managing director Stephen Fenby says the acquisition will bring 'skills in new product and technology areas' to Midwich

Midwich has acquired UK-based distributor Nimans along with other subsidiaries from Nycomm Holdings Limited for £27.5m.

Based in Manchester, Nimans distributes telephony hardware as well as solutions such as unified communications, VOIP, security and networking, and partners with a wide range of vendors including BT, Microsoft, NETGEAR and Yealink.

The acquisition does not include Avoira, an £21.5m-revenue comms partner which was formed through the fusion of four resellers in 2019.

Nimans accounts for the lion's share of revenues in the £130m-revenue Nycomm Group. The distributor generated consolidated revenues of £114.3m and pre-tax profits of £5.8 million for the year ending 31 December 2020 while currently trading with over 2,500 telephony, IT and retail customers and employing over 200 staff.

With its roots as a comms distributor, Nimans launched a security and AV division in 2019 marking its first move outside of the comms space.

"Midwich continues to grow its UC offering and Nimans brings further opportunities to the group, in terms of skills in new product and technology areas, service offerings to the trade, a large new customer base and new vendor relationships," Stephen Fenby, Midwich Group managing director, said.

"Its traditional telecoms market has experienced significant change in recent years, bringing with it new revenue opportunities which the company has developed strongly, in areas such as unified communications, video conferencing, security and networking.

"I believe that the combined skillsets and capabilities of Midwich and Nimans bring a unique offering into the market with the ability to provide complex solutions involving multiple technologies. I look forward to welcoming the whole Nimans team into the Midwich Group."

The deal will be funded from Midwich's existing facilities and is expected to be earnings enhancing in the year to 31 December 2022, the audiovisual distributor claims.

The aggregate consideration of £27.5m will be paid in cash with an initial consideration of £16.5m payable upon completion of the acquisition which will be followed by two fixed instalments of £5.5m each after 12 and 24 months respectively.