Maintel acquires Intrinsic for £5.25 million
UK communications and network integrator Maintel has recently acquired Merseyside-based reseller Intrinsic Technologies for £5.25 million. This is the most recent development in a trend of consolidation in the marketplace both globally and in the UK, which continues to affect many 4C Clients and the wider UK telecommunications industry.
Intrinsic Technologies is a secure communications solutions provider and a Cisco Gold Partner. The firm enables and manages secure intelligent communications solutions for UK businesses, predominantly medium to large enterprises and public sector organisations. The company has seen a long line of chief executives come and go since a management buy-out in 2011. In a 12-month accounting period that ended in May 2017, the company made a loss, before tax, of £547,000, according to Intrinsic’s most recent Companies House filing.
On the flip side, Maintel seems to have been performing a lot better than Intrinsic as of late. In March of this year, Maintel claimed to be one of the UK’s biggest B2B airtime dealers, after the company saw its annual revenue more than double to £108.3 million.
Founded in 1991, Maintel became AIM listed in 2004. The company describes itself as “a fast-growing provider of managed communications services for public and private sector enterprises across the UK,” saying, “We securely connect workforces in the office, on the move and in the cloud to make more agile organisations, more productive workers and better-engaged customers.”
The acquisition will make the new, merged company one of the UK’s largest communications integrators, with a total of around 700 employees and combined revenues of £160 million. The deal will, in theory, diversify Maintel’s current business offering and boost the company’s capabilities in networking, network security and unified communications.
According to Eddie Buxton, CEO of Maintel, “the acquisition of Intrinsic makes compelling strategic and financial logic for our shareholders.”
“Intrinsic has an enviable track record as one of the UK’s leading Cisco partners and significantly enhances Maintel’s strong capability in networking,” he continued. “As well as further broadening our Avaya capabilities, the acquisition also brings the opportunity to offer Maintel’s existing portfolio to Intrinsic customers, in particular, our ICON suite of cloud and managed services.”
Despite the worrying figures that have been released as of late, Maintel claims that Intrinsic is set to break even at the EBITDA level for the remainder of Maintel’s current financial year, which ends 31st December 2017.
Intrinsic’s office in Merseyside is set to remain open for the foreseeable future, and employees in the company’s London office will soon be relocated to Maintel’s nearby office in Blackfriars. The name “Intrinsic Technologies”, however, is set to be retired as of 1st January 2018, at the beginning of Maintel’s next financial year.
This acquisition, much like that of Shortel by Mitel two weeks ago, represents further consolidation within the industry and a continuing shift towards oligopoly. This is an industry trend that 4C expects to continue into the future.
Such change inevitably results in uncertainty and may have an impact upon customers’ current operations and longer term plans. Irrespective of whether you are a current 4C Strategies client, any existing customers of Maintel or Intrinsic who wish to gain a better insight into what this acquisition will mean for them are welcome to contact us and we will be happy to provide guidance.
Simply call us on 01858 438938 or email webenquiries@4C.co.uk.