Communicate ramps up acquisition drive with £1.5m loan
UK IT, telecoms and cyber security provider Communicate has delivered the next stage of its buy and build growth strategy, with the acquisition of B2B telecoms company Zencom Telecommunications.
The move has been facilitated by a £1.5m investment from independent asset manager BOOST&Co, which will fund the acquisition.
Working for both individual companies and for multi-occupancy business parks such as the Tees Advanced Manufacturing Park and Discovery Park in Kent, Communicate provides managed IT services, cyber security, network infrastructure and infrastructure management from its North East headquarters.
With more than 500 clients and 50,000 system users, the acquisition is the company’s third and will diversify revenue streams by providing specialist SME-centred services and unlocking new service lines.
BOOST&Co is a provider of growth capital for fast-growing UK SMEs. The independent asset manager offers loans ranging from £2m to £10m, covering a wide range of sectors. It has funded more than £500m across more than 130 deals to date and provided close to £200m under the government’s CBILS initiative to support SMEs during Covid-19.
Chris Mears, Principal at BOOST&Co, says: “The level of client focus and expertise in Communicate is highly impressive. The team is dedicated to making IT, telecoms and cyber requirements run smoothly and flexibly for their clients and take away the headache of dealing with multiple providers. This acquisition will broaden the offering and client base, while facilitating the next part of the continued growth journey.”
Tony Snaith, Chief Executive at Communicate says: “This acquisition is a natural fit for our business and will enable us to bring our expertise to bear in the provision of our full-service offering. Chris, Cea and the team at BOOST&Co worked closely with us to produce an effective funding package, which will take us to the next stage of growth.”
Debt advisory work was undertaken by Mark Andrews, Managing Director at Broughton Advisory. He says: “This acquisition will take Communicate to the next level and maintain a growth trajectory.”