LONDON, UK: Mitie Group plc has acquired DAEL Ventures Limited, a leading provider of acquisition, design and construction (ADC) services in the UK for mobile telecoms infrastructure, for £15 million.
This acquisition will broaden Mitie’s expertise in the fast-growing telecoms sector, delivering end-to-end service for customers and giving Mitie market-leading capabilities. The acquisition will be accretive to earnings and funded through existing facilities.
DAEL Ventures, (together with its subsidiaries DAEL Telecom Ltd, JB Towers Limited and JISTICS Limited), is the UK arm of Mak Holding Limited, which is related to DAEL Group Netherlands. DAEL Group Netherlands will continue to operate under its existing private ownership and is not part of the transaction.
Alongside ADC services, DAEL Ventures also provides specialist managed services of temporary mobile infrastructure to support the special events market, as well as bespoke structural engineering and design services for telecoms assets.
Highlights
· DAEL Ventures’ revenue for the twelve months to 31 December 2020 was £18.3m and profit before tax was £0.22m including a one-off charge of £0.42m. Gross assets as at 31 December 2020 were £6.9m
· Revenue is expected to grow significantly as the telecoms industry gears up to establish a full 5G network over the next 3-5 years
· DAEL Ventures’ key customers include the UK’s leading telecoms operators
· The consideration of £15m, subject to a completion accounts process, will be paid in cash and will be funded from existing facilities
· Andy Train, Managing Director, DAEL Telecom, and James Brennan, Managing Director, JB Towers, will join Mitie to create a new Telecoms business unit within Mitie’s Technical Services division
· The transaction is structured as an acquisition of the entire issued share capital of DAEL Ventures and each of its subsidiaries including the minority shareholding in JB Towers, owned by James Brennan
Phil Bentley, Chief Executive Officer, Mitie, said: “The acquisition, which is aligned with our new growth and margin enhancement strategy, provides us with the opportunity to broaden our scale and expertise in the fast-growing telecoms sector. Mitie will now have market-leading capabilities, putting us in a strong position to take advantage of the growth prospects arising from the rollout of 5G in the UK.”
Mitie Group PLC
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4 Aug, 4:35 pm GMT+1 ·Disclaimer
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