Maintel Holdings, a provider of telecoms and data services, has completed the acquisition of mobile telecoms provider Totility in a deal that could total up to £6.83 million.
Under the terms of the agreement, an initial payment of £2.83 million was made on completion. An additional contingent payment of up to £4 million is payable, subject to Totility’s performance over the 12 months following the acquisition.
Totility, based in London, supplies mobile services to approximately 1,100 customers and manages around 12,000 mobile connections by reselling O2 and Vodafone services. Eddie Buxton, chief executive officer of AIM-listed Maintel, said the acquisition strengthens the company’s ability to provide integrated communications solutions. “Customers increasingly want a unified approach that combines fixed and mobile networks. Adding Totility enhances our mobile capability,” he said.
Buxton further noted that the deal reinforces Maintel’s strategy for growth and its aim to offer a comprehensive, one-stop communications service.
For the 12 months ending in the first quarter of 2011, Totility reported revenues of £2.3 million and profit before tax of £1 million. As part of the transition, Totility’s managing director, Terry McKeever, will remain in his role, while the business’s customers and staff will be integrated into Maintel’s London headquarters.