RCS - Gamma Communications - Gamma Acquires BrightCloud Group Ltd

Gamma CommunicationsAnnouncement

25/07/2024 08:30

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RNS Number : 7438X  Gamma Communications PLC  25 July 2024

25 July 2024

RNS Reach

Gamma Communications plc

("Gamma")

Gamma acquires BrightCloud Group Ltd

 

Gamma Communications plc ("Gamma"), a leading provider of technology-based
communication services across Europe, announces the expansion of its contact
centre and customer experience ("CX") expertise and capabilities with the
acquisition of BrightCloud Group Ltd ("BrightCloud"), a privately owned
company.

Background to BrightCloud

BrightCloud is Cisco's leading European Enterprise partner for CCaaS, and is
renowned for its expertise in CX transformation. The acquisition is a further
accelerator in Gamma's key objective to become a leading managed service
provider for enterprises across Europe looking to transform their
communications estates. The acquisition also further deepens Gamma's strategic
partnership with Cisco.

Gamma already provides CCaaS solutions, support and services to businesses and
the acquisition aims to expand its expertise and capitalise on the CX
transformation growth opportunity, specifically across the European Enterprise
and Public Sectors markets.

Gamma has been working with large enterprises and public sector organisations
for over 15 years, offering a range of UCaaS and CCaaS solutions and managed
networking. BrightCloud manages a large estate of Cisco Contact Centre
installations and Webex CCaaS solutions, bringing with it considerable
experience in implementations, support and expert services, along with an
impressive client list.

Strategic rationale

The acquisition of BrightCloud is a key part of one of our strategic pillars
which is "to become a trusted partner to Enterprises across Europe,
transforming their communications estates". The acquisition increases the
capability and scale of our Enterprise business. We continue to look for
opportunities which would enable us to offer additional solutions for our
Enterprise customers. As well as acquisitions of this size, there may be
further opportunities where a larger acquisition could efficiently bring us
several new capabilities at once.

Gamma acquired the entire issued share capital of BrightCloud for an initial
cash payment of £9.0m (excluding amounts paid for cash acquired). There is
also an additional payment of up to £4.0m in relation to an earnout agreement
which is dependent on revenue targets over the period between closing and 31
December 2025. For the year ended 31 March 2024, unaudited revenue was under
£8m and EBITDA was approaching £0.9m. Given the timing of the closure of the
transaction, the Group expects to disclose the provisional accounting for the
acquisition in the 2024 year end results.

Due to its small size relative to the Gamma group, the detailed financial
terms of the acquisition are not being disclosed. For the avoidance of doubt,
the acquisition does not constitute a substantial transaction for Gamma in
accordance with the AIM Rules for Companies.

Andrew Belshaw, CEO at Gamma commented: We are delighted to welcome
BrightCloud and the team to the Gamma group. BrightCloud has a strong
reputation in the Cisco ecosystem and in-depth expertise in supporting CCaaS
implementations and CX transformations and, together, we can provide our
current and future customers with the best in industry solutions for leading
CX and CCaaS delivery.

Gregor Campbell, Director of CX Practice, BrightCloud commented: We're excited
to become part of Gamma for many reasons: the culture, the ambitious growth
plans, and strong leadership that align well with our company ethos.
Importantly for our customers, knowing we are being acquired by an
organisation that puts relationships first, means we know our customers will
continue to get the specialist care and attention they have been used to but
now with greater resources.

 

Enquiries:

 

 Gamma Communications plc                  Tel: +44 (0)333 006 5972

 Andrew Belshaw, Chief Executive Officer   CompanySecretary@gamma.co.uk (mailto:CompanySecretary@gamma.co.uk)

 Bill Castell, Chief Financial Officer

 Rachael Matzopoulos, Company Secretary

 Investec Bank plc (NOMAD & Broker)        Tel: +44 (0)207 597 5970

 Patrick Robb / Virginia Bull

 Teneo (PR Adviser)                        Tel: +44 (0)207 260 2700

 James Macey White / Matt Low              Gamma@teneo.com (mailto:Gamma@teneo.com)

Notes to Editors

Gamma Communications plc is a leading provider of technology-based
communication services across Europe. Gamma is admitted to trading on AIM and
employs approximately 1,800 people. Offering a range of Unified
Communications, mobile, security and connectivity services, Gamma provides
robust and secure end-to-end business communication solutions, enabling
organisations to communicate, collaborate and offer a better customer
experience.

Gamma's vision is for a better-connected world in which it can work smarter
for the benefit of business, people, and the planet. Its primary market is the
UK, where it delivers network-based services to SME, Public Sector, and
Enterprise markets through its extensive network of trusted channel partners
and direct sales and support capabilities. Expanding its presence in Europe,
Gamma is continuing to grow its group of businesses focused on digital
transformation by delivering services to customers via a network of channel
partners in Germany, Spain, and the Benelux region.

For more information about Gamma and its comprehensive range of products and
services, please visit www.gammagroup.co (http://www.gammagroup.co) .

 

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