Limerick telecoms firm 4site acquired by UK-based Indigo group
LIMERICK-based telecoms consultancy firm 4site has been acquired by the UK's Indigo Telecom group in a deal which creates a combined business with an annual turnover of about €60m.
4site was owned by its chief executive, Ian Duggan.
The firm was established in 2002 and is a specialist provider of mobile wireless and fibre services. It assists with the planning, design and build of wireless and fibre network infrastructure, and has worked with telecoms companies including EE, Three, Vodafone, Ericsson and Imagine.
Mr Duggan said the deal accelerates 4site's long-term growth ambitions.
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"With its financial backing and scale of operation, Indigo is perfectly placed to support 4site's growth plans and vision for the future," he said.
"The deal will facilitate the continued development and expansion of our telecoms services in Ireland and the wider international market."
The latest set of accounts for the company behind 4site show it made about a €700,000 loss in 2018. However, the firm also paid a €1.1m dividend to its holding company.
Indigo Telecom designs, installs and maintains international telecom and data networks which facilitate the delivery of fixed line, broadband, mobile and other data services to a wide variety of end users.
"The synergies between our two businesses presents significant opportunities for continued growth and we see huge benefit for our customers from our expanded portfolio of services," said Indigo chairman Kevin Taylor.
The latest accounts for the holding group behind Indigo show that it generated turnover of £32m (€38.3m) in the year to the end of last April. It posted earnings before interest, tax, depreciation and amortisation of £4.3m (€5.1m), and a pre-tax profit of just over £2m.
Its turnover and profits surged compared to the previous year as it benefited from a full-year contribution from Belcom, which it acquired in 2017.
Indigo was acquired by management with private equity backing in 2016.
In November last year, a secondary management buyout was engineered with the financial support of London-based private equity firm Growth Capital Partners.
Indigo said in its latest set of accounts that it is following a plan for "significant growth".
"Management has a growth strategy to create a global network services group that is resourced to achieve both organic growth, capitalising on a number of attractive market opportunities, and a focused buy and build strategy in a sector that has seen strong recent M&A activity," it added.
It noted that potential acquisitions "are being actively targeted across all areas of the business".