RNS Number : 6397K
23 December 2008
23 December 2008
Keycom plc ('Keycom' or 'the Company')
The Board of Keycom is pleased to announce that it has agreed to purchase Masterpoint Engineering Limited ('Masterpoint') for a total consideration of £2.31 million. The consideration is to be satisfied by the way of a cash payment of £1.56 million and the issue of loan notes totalling £750,000, which are repayable over the course of the next twelve months.
Masterpoint has been, until this transaction, a competitor of Keycom in the student broadband market. It currently provides broadband services to approximately 6,600 student rooms, primarily in Glasgow and Leicester Universities. In addition, Masterpoint also provides engineering and maintenance services which account for about 40 per cent of their revenue. The turnover of the Masterpoint business for the last twelve months ended 30 June 2008 was £1.9 million generating a gross profit of £1.0 million.
Commenting on the acquisition, Rod Matthews, Executive Chairman and CEO of Keycom, said 'I am delighted to be able to announce the acquisition of Masterpoint. Together with the acquisition of MCW, announced in September 2008, we now have 28,000 active broadband rooms in service with contracts already awarded for a further 20,000. We are also in active discussions on a number of other broadband contracts which will significantly further augment this base. We continue to view the long term prospects of the Company with confidence'.
Rod Matthews (Executive Chairman and CEO) 07775 755 500
Graham Robertson (Finance Director) 01785 717 411
Seymour Pierce Limited
Paul Jewell/David Banks 0207 107 8000
Paul Davies/ Catherine Leftley 0207 107 8000
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