The investment will enable New Call to develop its existing customer service and offers while providing the funding to pursue a buy-and-build strategy in a highly fragmented industry.
Dr Jerome Booth, who retired earlier this year as head of research at fund manager Ashmore Group to focus on his private business interests, will become chairman of New Call which is on track to exceed £20 million in turnover in the next 12 months and is a top ten provider in its market.
Based in Burnley, Lancashire, London and New Delhi, India, the company was founded in 2010 when its chief executive Nigel Eastwood led a management buyout of the business from US parent PTGi. Since then, it has become one of the fastest growing residential telecom service providers in the UK, with a well-established customer base, the business hit the headlines in 2011 when it switched its main contact centre from Mumbai, India, to Burnley.
It is a price leader in the residential telecoms market through its brands such as Primus Saver, which offers phone and broadband packages, and Planet Talk, Just Dial and Rate Buster, the low cost international calls services.
Nigel Eastwood said: “This deal is a key milestone for our business and testament to the hard work and dedication of all our teams. We are delighted to join forces with Jerome, who is going to become a great ambassador for our business, and like myself, has the vision, drive and ambition to shape our business into a major player. New Call is now very well positioned for extraordinary growth.
“These are really exciting times for everyone at New Call. We now have the backing, market potential and team to step-change our growth in the residential broadband market, underpinned by our focus on value for money and superb UK-based customer services delivered by the best and most enthusiastic team in the market. My fellow board members Richard Jennings and Geoff Pestell will play pivotal roles in our journey moving ahead.”
“We provide customers with total transparency in pricing so they can avoid the bill shock associated with far too many providers in our market who often mask the true cost of services by clever advertising.”
Jerome Booth said he was investing a significant sum in New Call and was delighted to be involved with the business.
“This is a very special company with a great reputation, talented and motivated management and employees. This coupled with a loyal and growing customer base means there is a powerful investment case,” he said.
“As a fast moving alternative telecoms provider, free of the infrastructure costs of bigger rivals and using smart marketing rather than costly advertising campaigns, New Call is able to pass on cost savings direct to customers.
“As well as the opportunity to build on New Call’s strong organic growth the company is now well placed to make strategic acquisitions in the fragmented UK telecoms market. Building on the successful execution of the strategic plan to date we can take the business forward with confidence.”