Member Article

BGF funding fuels AdEPT Telecom's £12m schools IT acquisition

IT managed services business AdEPT Telecom has announced that a new loan instrument with the British Growth Fund (BGF) will help to fund its eight-figure acquisition of Atomwide, a provider of IT services to schools.

The London-based firm confirmed to the London Stock Exchange this morning that it had agreed a £7.3m convertible loan instrument with BGF which, along with £4.7m from an existing bank facility, would be used to fund the acquisition.

The deal, which AdEPT said will enhance its earnings upon completion, will help to position the business as one of the market leaders in the provision of IT in London’s schools, building upon the IT services agreement that Atomwide currently has in place with over 3,000 schools in the capital.

Founded in 1987, Orpington-based Atomwide provides IT-enabled solutions including WiFi, CCTV, IT technicians and other services to schools.

Ian Fishwick, Chief Executive of AdEPT, commented: “We are delighted to have acquired such a high quality, well-run and profitable business with a strong management team.

“Atomwide is an excellent fit because it gives us a strong market position in IT for education, particularly in London. This complements our acquisition of OurIT in February 2017 which is focused on London and South East commercial customers.

“After the Atomwide acquisition approximately two thirds of AdEPT revenue will be generated from managed services. The acquisition is expected to be earnings enhancing from completion.”