£16m Leeds telecoms provider acquired by Elite Telecom

Nexus Telecommunications Limited, the Leeds-based communications solutions provider, has been acquired by Elite Telecom.

This latest acquisition is Elite’s 15th since 2008, all of which have been funded through internal cashflows and conservative leverage with no outside investors.

As a result of the deal, the newly enlarged Elite will have revenue in excess of £50m with underlying EBITDA of over £8m.

The group will also have around 165 staff operating across seven locations, with Nexus contributing £16m revenue and 35 staff.

Nexus will be rebranded as Elitetele.com.

Rob Sims, CEO of Nexus Telecommunications, is staying on with the business and joining the group leadership team.

Matt Newing, Elite’s founder and CEO, said: “We’re delighted with the acquisition of Nexus Telecommunications. Nexus has a great reputation in the industry and is a perfect complement for Elite.

“We share a similar high-service culture, and we believe the combination of our two companies’ unified comms and IT products and services will deliver the strongest client offering in the industry.”

“Nexus has some bespoke service wrap solutions to meet individual customer requirements that Elitetele.com will offer to our wider customer base, that focus on corporate and enterprise clients.

“Its great customer base is backed by a strong team of people who we’re really happy to welcome to the Elite Group. We look forward to working with them to deliver the best customer experience in the industry.”

Rob Sims added: “Nexus’ culture of service excellence, flexibility and customer choice make us a great fit with Elitetele.com.

“Our customers will benefit from Elite’s wide range of services, including hosted IT services, PCI Compliance, SIP services, phone systems and numbering services, which will complement the Nexus offering, giving our customers even better service.”

Elite’s internal M&A team and internal legal counsel completed the acquisition.

Gareth McIntegart, Elite’s Legal Counsel provided legal advice, working alongside Russell Horton, COO; Rob Burbidge, Finance Director; Alex Cliffe, Commercial Director, and Adam Turton, Sales Director.

Leveraged finance was provided by the company’s existing lender, Lloyds Banking Group.

Financial Due Diligence was undertaken by the Manchester office of Mazars LLP, led by Neil Robinson, Jeremy Booth and Hayley Brightmore.

Nexus was represented by Hull Solicitors Gosschalks led by corporate partner Paul Plaxton.