Acquisition of two UK telecoms businesses
GX Networks plc, the telecoms network operator and provider of business broadband solutions, has acquired XTML Limited (“XTML”) and Compulink Information eXchange Limited (“CIX”), which were previously part of the Telenor Business Holdings UK Limited Group (“Telenor”).
CIX’s principal focus is the provision of connectivity services to a broad UK customer base, offering leased lines, ADSL, dial and conferencing services. XTML is engaged in the provision of application and hosting solutions to both the UK public and private sectors, including County Councils, and major multi sited corporations.
The new business complements the existing business of GX Networks and will provide customers with greater choice of hosting locations and new services, together with increased coverage. At the same time, management expect the two businesses to enhance the Group’s profits in the short-term.
The businesses had unaudited revenues of £11 million for the year ended 31 December 2002 and as part of Telenor did not report a profit. On acquisition the net assets of the acquired companies was approximately £1.0 million.
The total consideration payable in respect of the acquisitions is £1.0 million, which will be satisfied entirely by the allotment of Ordinary Shares of 1p each in GX Networks at a price of 5p. Such allotment will be made on or before 31 August 2003.
Commenting on the acquisition, Peter Dubens, Executive Vice Chairman of GX Networks plc, said: “In June we stated that our strategy was to monitor acquisition opportunities and this marks the start of a structured programme to grow GX Networks significantly over the next year.
“With no heavy infrastructure costs burdening the Group, GX Networks is well positioned to take advantage of the current UK telecoms marketplace. This specific acquisition takes us one step further in establishing critical mass, increasing revenues and customers, whilst providing a faster route to profitability.”
- Ends -
For further information:
GX Networks plc
Peter Dubens, Executive Vice Chairman Tel: +44 (0) 20 7766 6909
Stuart Lane, Corporate Finance Tel: +44 (0) 20 7523 8310
Henry Harrison-Topham / Ariane Vacher Tel: +44 (0) 20 7444 4140
Notes to editors:
GX Networks plc is a telecoms network operator and provider of business broadband solutions. The Company is listed on the Alternative Investment Market (AIM) and prior to March 2003 was known as Zipcom plc.
Zipcom listed on AIM in April 2000 and acquired Transigent, the holding company for GX Networks, in October 2002. The company changed its name to GX Networks UK Limited in March 2003.
This press release was distributed by ResponseSource Press Release Wire on behalf of Lothbury Financial in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.