Wavenet Group To Acquire AdEPT Technology Group In £50.3m Deal
AdEPT Technology Group, a leading independent provider of managed IT services, connectivity, unified communications solutions, and cloud services in the UK, is set to be acquired by Wavenet Group, a subsidiary of Macquarie Group. The acquisition, valued at £50.3m, was recommended to AdEPT's shareholders and has been advised by Houlihan Lokey and Singer Capital Markets as fair and reasonable.
The AdEPT Board has resolved to cancel the interim dividend of 2.50 pence per share in respect of the six months ended 30 September 2022 as part of the acquisition. Wavenet Group provides telecoms and technology services to over 15,000 business and enterprise customers across the UK, with pro forma annual revenues of over £200m.
AdEPT has been on a strategic journey since its formation in 2003, transforming itself into one of the UK's leading independent managed service providers with a resilient and highly recurring financial profile. The company delivers services to a broad range of public and private sector clients with its "One AdEPT" philosophy and operating platform.
Ian Fishwick, Chairman of AdEPT, stated that while the company believes it can deliver long-term growth and profitability, uncertainties and risks in the short to medium term impact its ability to optimise growth as a stand-alone quoted entity. He added that combining AdEPT with Wavenet will enable the next phase of AdEPT's growth to be strongly supported.
Bill Dawson, CEO at Wavenet, expressed his delight in the proposed combination and praised the significant achievements of the AdEPT team, stating that the two companies will drive growth by focusing on the best of both Wavenet and AdEPT's skills and services.
The combined Wavenet and AdEPT business will have an excellent product offering, and AdEPT's education presence, in particular will add scale to an attractive end sector. Adam Joseph, Senior Managing Director and Head of Private Equity for Europe for the Macquarie Group, stated that they are delighted to back Bill Dawson and his team in this strategic acquisition.
The acquisition of AdEPT by Wavenet Group is set to create a strong player in the UK-managed services market, with a broad range of services and a strong financial profile. The combined entity is poised for significant growth, driven by the best skills and services of both companies.