News

Buy out at Glamorgan Telecom

Glamorgan Telecom Ltd, who employ 52 staff in Wales, has announced a Vendor Inspired Management Buy Out (VIMBO) financed by The Royal Bank of Scotland ("RBS") in a combined debt and loan note structure of £4.4m. This values the company at £9.4m.

Glamorgan Telecom Ltd, winner six times running in Deloitte's 'top 50'

technology award, supply, install and maintain communication systems for small to medium sized companies in the health, education, industrial and commercial sectors in Wales and England.

Glamorgan are also the Welsh business partner for manufacturers such as Samsung, LG Electronics, Avaya communications and Mitel. Glamorgan's Welsh customers include; Gwent Magistrates Court, Protectagroup, Cardiff Blues and Glamorgan Cricket Club.

Glamorgan Telecom Ltd was established in 1993 and is now the largest independent telecoms dealer in Wales and one of the largest in the UK.

The transaction was built around a planned succession strategy with shareholders Neal Pughe and Angelo Loizos relinquishing some of their shares to allow existing key personnel a stake in the business. Both Neal and Angelo will remain fully involved in the business, maintaining their Chairman and Sales Director roles. Kelly Bolderson, the other shareholder will assume Managing Director responsibility.

Glarmorgan's VIMBO was structured by the RBS Structured Debt Solutions team in Cardiff who specialise in supporting leverage finance transactions. They worked closely with the management team and their advisors KTS Owens Thomas and Geldards to structure the deal. PKF and Hugh James in Cardiff acted for the Bank.

Neal Puge, Chairman of Glamorgan Telecom Ltd commented: "We are delighted that this deal has now been completed. These are exciting times for our company with the advent of new technologies emerging such as home working and the ability to use internet technology for free calls (VoIP) which we are seeing a strong demand from our clients."

"The RBS team worked together to understand our strategy and out together a tailored a debt package to support the buy out and our growth aspirations", he said.

Matt Hatcher, Associate Director for RBS Commercial Banking in Cardiff said: "We have a long and successful relationship with Glamorgan and are delighted to have supported them with their strategy."