October 30, 2018 – Gamma Communications plc (Gamma), a leading, technology-based provider of communications services to the UK business market, acquired DX Groep BV (dean one). dean one is a growing telecoms group based in the Netherlands. Lexence has advised the selling shareholders/founders.
Corporate / M&A
dean one is a business with many similar attributes to Gamma. It is largely a channel-led business, focused on products that Gamma has strong knowledge of and experience in. The market penetration and growth rates in sales of Cloud PBX in the Netherlands is similar to that in the UK, where Gamma has a track record in driving sustainable growth.
Gamma management have known the dean one business for a number of years. It has a very similar product set to Gamma, selling Cloud PBX, SIP trunks, data products and mobile to primarily SME businesses via a network of over 500 channel partners. It employs approximately 60 people. In the year ended 31 December 2017 revenue was c. €15.8 million and EBITDA was c. €0.8million.
The Board believes that, as part of Gamma, dean one’s growth can accelerate and that dean one can act as a focal point through which Gamma can broaden its geographic footprint in the medium term. Gamma will also use the acquisition as an opportunity to take products which have been successful in the UK into new markets.