AT Communications Group Plc (‘ATC’), one of the UK's leading business-to-business systems integrators, has acquired the entire issued share capital of Britannia Telecom Group Limited (‘Britannia’), a specialist voice and data reseller, for a total consideration of £3.84mn. The consideration was satisfied as to £3.47mn in cash, £97,845 by the issue of unsecured guaranteed loan notes and by the issue of 589,400 ordinary shares in the capital of ATC. Application has been made for these ordinary shares to be admitted to trading on AIM. ATC will also assume £2mn of debt following the completion of the acquisition. Britannia has more than 2,300 customers, predominantly located in the North West of England. Its core activities are supplying, installing and maintaining telephone systems, including fixed line voice and maintenance. Britannia has traditionally sold equipment manufactured by Toshiba, Panasonic and Samsung, and is Panasonic's largest reseller of business systems in the north of England. In the year to 30 November 2005, Britannia had revenues of £5,465,000, EBITDA of £1,401,000 and profits before tax of £431,000. Long-term recurring maintenance and fixed line voice contracts account for 72% of its revenue and 73% of its gross margins. Most of Britannia's 2,300 maintenance contracts are for seven years, with more than 2,050 customers contracted for fixed line voice contracts.  Britannia's wide client base includes JJB Sports and Specs Savers, although neither represents more than 5% of revenue.
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