Telecoms and data services business Maintel Holdings has bought out Totility in a deal which could rise to £6.83 million.

Telecoms and data services business Maintel Holdings has bought out Totility in a deal which could rise to £6.83 million.

Under the terms of the deal an initial consideration of £2.83 million is payable on completion, with a subsequent £4 million to be paid dependent on Totility’s performance for the 12 months after purchase.

London-based Totility provides mobile telecoms to 1,100 customers and 12,000 mobile connections through its reselling of O2 and Vodafone services.

Eddie Buxton, chief executive officer of AIM-listed Maintel, comments: ‘Increasingly, customers are looking for a unified solution to their technology by converging fixed and mobile networks. The acquisition of Totility enables us to enhance the mobile element of our offering.

‘This acquisition underlines our commitment to future growth and the provision of a complete, one-stop communications service.’

Totility reported revenues of £2.3 million and profit before tax of £1 million for the year to date 31 March 2011.

As part of the deal, managing director of Totility, Terry McKeever, is to remain in the position post-acquisition.

The transaction is conditional upon Maintel entering into a loan agreement with chairman John Booth, to lend the business £1.5 million to finance to buy.

Following the deal, the Totility business, customers and staff are to be incorporated into Maintel’s London headquarters.