Welltel Announces Invistech Acquisition

12 Feb 2020 | 08.17 am

Welltel Announces Invistech Acquisition

Fourth deal in four years

12 Feb 2020 | 08.17 am

 Welltel has formally announced the acquisition of Cork peer Invistech. The deal concluded in December 2019.

Welltel supplies communications solutions to SME and enterprise businesses while Invistech is a provider of managed IT and telephony services.

Welltel CEO Ross Murray (second from right in photo) said his company had been been looking to enter the managed IT and security market and to expand in Munster. He described Invistech as a perfect fit.

“The two major drivers of the deal were Invistech’s customer base and its product portfolio,” Murray added. “Welltel now has another 400 customers that are interested in coming onto our network for internet and voice services.

“The Invistech portfolio of support services, online back-up, security and Microsoft applications completes our SMB technology offering, which we feel provides great growth opportunities to the business going forward.”

Welltel employs c.100 people across offices in Dublin, Cork and Limerick.

Invistech was owned by John Feeney (54) and Colm O’Dea (38). The company booked a net profit of €103,000 in 2018 following a net profit of €220,000 in 2017. Year-end net worth was €575,000, including €530,000 in cash. Trade debtors stood at €266,000 in December 2018.

Consideration for the deal was not announced though filings disclose that the sale arrangement includes pension payments of €600,000 to Feeney and O’Dea.

Welltel sourced deal finance from Duke Royalty UK Ltd.

John Feeney commented: “This new partnership accelerates our plans to scale the business where our new extended portfolio will allow us to deliver fresh products and services to the combined client base and to exponentially to grow the business.”

Welltel Ireland’s accounts filing for 2018 shows total liabilities of €9.2m, including €5.3m in long-term debt owed to credit institutions. The company booked €2.2m in goodwill intangibles to the balance sheet in 2018, and paid €1m interest on borrowings. Net loss for the year was €580,000.

 

 

 

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