06 Jul 2017 | 10.12 am
Welltel Buys Advanced Telephone Systems
BMS Finance and Capital Step Funding finance the takeover
06 Jul 2017 | 10.12 am
Business telecoms specialist Welltel has acquired peer company Advanced Telephone Systems Group Ltd for an undisclosed sum. Established in 1993, ATS’s clients include the Department of Social Protection, the Irish Stock Exchange, Version 1 and the Aldi Group.
Welltel, led by co-founder and managing director Ross Murray, provides end-to-end communications service including phone system, connectivity, voice service, WiFi, managed network and security.
According to Murray: “Our acquisition of ATS is another milestone for the company as we look to increase our market share in the enterprise and government markets as well as increasing the product portfolio we can offer to both customer bases. We are very excited to have acquired ATS’s experience and market knowledge and look forward to working with their customers, technology and team. This is a very positive day for our company.”
Dublin based corporate finance firm, FinRes, acted as M&A and funding advisor to Welltel on all aspects of the transaction. Funding for the deal has been provided by BMS Finance and Capital Step Funding, which operates on a revenue based royalty financing model.
ATS was owned by directors Peter Sullivan and Christine Sullivan. In the year to March 2016, ATS Group had 17 employees, with a payroll overhead including the executive directors of €1,027,000.
Advanced Telephone Systems Group Ltd booked a net loss of €62,000 in 2015/16 and net worth at year end was €95,000. Year-end liabilities amounted to €565,000 and intangibles were valued in the balance sheet at €320,000. According to Welltel, ATS has 1,300 business customers in Ireland.
Welltel Ireland Ltd booked a net profit of €24,000 in 2015 as debtors expanded to €322,000 from €118,000 the year before. Year-end liabilities amounted to €662,000 and the deficit in shareholders’ funds at 31 December 2015 was €187,000. The company had 12 staff on the books through 2015, including directors Ross Murray and JP Crilly.
Welltel Ireland is a subsidiary of Taurus Communications Ltd. That company had a net worth of €80,000 in December 2014.
Founded in 2006 in Dublin by Murray and Crilly, Welltel says it processes 40 million voice minutes per annum and services 2,000 business customers in Ireland and abroad. In November 2015, Welltel purchased the NEC Support business from Eyrco, the former telecoms division of Unity Technologies IT Ltd.
Photo: Ross Murray (left) and Peter Sullivan.