Ireland’s fastest growing business telecoms provider, Pure Telecom, has acquired NewTel Communications from Orion Telecommunications for an undisclosed seven-digit sum, adding €8.5 million (£6 million) to its annual turnover.
Ireland’s fastest growing business telecoms provider, Pure Telecom, has acquired NewTel Communications from Orion Telecommunications for an undisclosed seven-digit sum, adding €8.5 million (£6 million) to its annual turnover.
Under the terms of the agreement, Pure Telecom will acquire NewTel Communications’ Citywest-based call centre and client list of 12,000 customers. NewTel will continue to trade under its existing brand name.
The sale of Orion’s Irish and UK business followed the company’s announcement of the board’s intention to sell the operations in Ireland as part of its strategy to actively participate in the consolidation of the Irish and Australian telecommunications markets and complements the proposed acquisition of Orion by M2 Telecommunications Group via a scheme of arrangement. The acquisition of Orion consequently completed on 28 September.
Privately-owned Pure Telecom has been a service provider to the business sector since 2002 when the company was established by Paul O’Connell and Alan McGonnell in order to exploit growth opportunities for telecoms providers in the wake of market liberalisation.
The company specialises in providing phone and Internet access services to SOHO, SME and corporate customers, guaranteeing lowest rates and one-to-one account management. These include: inbound and outbound voice solutions (local and long distance, lo-call and freephone numbers); high-speed Internet access solutions (DSL, wireless, satellite and leased line); and telecoms auditing, hardware and data solutions. Customers include major pharmaceutical companies, government bodies, financial institutions and professional bodies.
NewTel Communications was set up in 1999 as a wholly-owned subsidiary of Australian-quoted Orion and went on to become the group’s largest European operation. Its British arm, which forms part of the deal, was established in March 2003 to provide customer services comprising billing and payment collection out of Dublin.
Shaffrey & Company solicitors were appointed by Pure Telecom to act as their lawyers. Orlaith Shaffrey headed the legal team and her experience and knowledge of the client’s requirements facilitated a quick turnaround on legal due diligence completing a complicated process within the short timeframe required by the parties involved.
LHM Casey McGrath was financial adviser to Pure Telecom. Assurance partner Brendan Murtagh and corporate finance director Vincent Barry led the team.
Commenting on the appointment, Murtagh said: “Pure Telecom is an audit client of the practice. Through our client and sector knowledge, we were in a good position to support our client with the transaction through our corporate finance team.
“The transaction timeline was challenging in that the transaction completed within four weeks from initial contact with the Newtel Communications parent in Australia.
“The transaction represents a significant one for the company in that it will double the size of the company in 2007. The acquisition, which will also double revenue for the Pure Telecom Group to €15.5 million (£11 million), will significantly strengthen Pure Telecom in the Irish market.”
