Partner Article

TFM expands network with funding from Yorkshire Bank

TFM Networks Ltd, the Aylesbury-based internet and telecoms business, has acquired internet network provider Globalwave Communications Ltd, in a deal supported by Yorkshire Bank.

Yorkshire Bank’s Acquisition Finance team in the Midlands provided senior debt and working capital facilities in support of the shareholder restructuring of TFM simultaneous acquisition of Globalwave.

TFM and Globalwave operate in the managed services and networks market, providing packaged telecoms services to multi-site SMEs. TFM was formed in 2003 and employs 17 people. The company is an independent provider of Virtual Private Networks across mobile, voice, VoIP and Wi-Fi platforms.

Globalwave was incorporated in 2001 and is based in Loughborough, Leicestershire. The business transitioned from primarily website development and design to that of a managed network provider and joined BT’s Collaborative Partner Programme in 2004. It provides internet network services to BT’s small to mid-tier customers.

Stewart Yates, Managing Director of TFM becomes CEO of the enlarged group. David Heyes, COO of TFM assumes the COO role for the group and also becomes Managing Director of TFM. Matt King, Technical Director of Globalwave prior to the sale, joins the group board.

Stewart Yates of TFM said: “We have been very impressed with the Yorkshire Bank team. They have shown a good understanding of our business and are forward-thinking and progressive funding partners who have enabled us to put in place a sound platform for further growth.”

The deal was led by Ian Mansell and Ian Howey at Yorkshire Bank and builds on the Bank’s wide experience of the TMT sector.

Ian Mansell, director of acquisition finance at Yorkshire Bank, said: “Telecom services to the SME market is highly fragmented and the Bank has supported a number of businesses in consolidation transactions in recent years.

“Both TFM and Globalwave have recently invested heavily in their own networks and have developed a strong and growing recurring revenue base from a good mix of customers. The acquisition will enable both of them to expand the range of services that each provides and eliminate duplicated costs.”

The Bank was advised by Paul Ray from Browne Jacobson, Birmingham. Financial due diligence was provided by Paul Johnson and David Horsburgh of Baker Tilly and Robin Leggett of MCi reported on the market.

Paul Isaacs advised TFM on the deal and Paul Hayward of Gateley provided legal advice to the business.

Stephen McElhone of Spearing Waite provided legal advice and Chris Taylor of Smith Cooper provided commercial support for Globalwave.

This was posted in Bdaily's Members' News section by Michelle Wilson .