LONDON, UK: Midwich Group (AIM: MIDW), a global specialist audio visual distributor to the trade market,t has entered a binding agreement to acquire Nimans Limited and its subsidiaries from Nycomm Holdings Limited.
The aggregate consideration of £27.5 million will be paid in cash. The initial consideration of £16.5 million payable upon completion of the acquisition will be followed by two fixed instalments of £5.5 million each after twelve and twenty four months respectively.
Nimans is a UK based specialist distributor of unified communications, telecoms, collaboration and audio visual technologies.
Based near Manchester, Nimans was founded in 1981 and has built a strong presence and reputation in the UK telephony hardware market.
In recent years the business has expanded successfully into new market areas such as unified communications, VOIP solutions, security and networking. Key brand relationships include Yealink, Jabra, and BT. The Company trades with over 2,500 telephony, IT and retail customers and employs over 200 staff.
In its latest audited financial statements, for the year ended 31 December 2020, Nimans generated consolidated revenues of £114.3 million and profit before tax of £5.8 million. Net assets (excluding net cash balances) at 31 December 2020 were £11.4 million.
The transaction has been undertaken on a cash free/ debt free basis. Completion is subject only to FCA approval and expected in the first half of 2022.
Stephen Fenby, Midwich Group Managing Director, commented: “Nimans is a long-established business with a great reputation for technical excellence, customer service and logistics. 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.
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.
I believe that the combined skill sets 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.