Northants telecoms firm sold to create £20m company

Shez Cheema

Northampton-based communications company Pure Business Services has been sold to Solihull-based PMGC, an independent provider of telecoms and technology services, in a deal which will create a £20m company.

The deal, the first of its kind between two Vodafone Total Communication Partners, has created the third largest independent provider of mobile services in the UK, with more than 70,000 customers.

Established in 2006 by Marcus Richardson and Gavin Tedstone, Pure has an annual turnover in excess of £8m.

In 2012, the company received investment from Finance Birmingham to enable it to achieve its growth ambitions.

Solihull-based PMGC was formed in 2012 following the merger between Premier Mobile, Phonebox Communications, AMC, Veecom, RGT and Dane Europe.

As well as its head office in Hampton-in-Arden, the company has offices in London, Bristol and Edinburgh.

The board of the new combined business will comprise Shez Cheema, chief executive officer of PMGC who will continue as CEO, and John Handley, chief investment officer of Finance Birmingham, who will become chairman. Sam O’Donnell from PMGC will continue as chief operating officer.

Cheema said: “Growing the business organically and moving us from a pure play fixed and mobile provider to a unified telecoms and IT fully managed service provider is now our sole focus. The acquisition of Pure provides us with the perfect launch pad, increased critical mass, capability and expertise, to enable some ambitious longer term strategic aims that include IP voice, IT hosting and Cloud computing.”

A team from Cooper Parry Corporate Finance led by Andy Parker and Sabial Hanif, and assisted by Philip Rogers in corporate tax, advised on the deal.

Hanif said: “This was a complex deal in a rapidly changing telecommunications market, which continues the trend of successful exits for entrepreneurs and private equity investors.”

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