Amid the current economic doom and gloom Chess Telecom, the most active consolidator in the UK telecoms market, shows no signs of slowing down announcing two database acquisitions for the month of May, bringing the total to 33 acquisitions, six in the last 18 months.
In a move that marks the strength and flexible nature of Chess’ approach to deal making, the two latest database acquisitions belong to Bridgend based JVH Group and North East based CI Wholesale adding to Chess’ 20,000 strong client base.
These latest deals will add £1.8 million a year in revenue to Chess’ 2010 year end figures, which had risen to £27 million in 2008/09.
Chess’ deal making demonstrates a new breed of acquisition offering a high degree of flexibility. It has developed a range of novel deal structures providing vendors with a variety of options.
The latest database acquisitions have enabled the owners to capitalise on their assets, knowing their customers will be well looked after, whilst they to continue to trade and hopefully build a further customer base to sell to Chess at a later date.
Vernon Hopkins, managing director of JVH, stated: “We had been looking at several interested parties when we came to sell and Chess was the clear choice. Our customers are the most important factor in this deal and from first contact with Chess, we knew they are extremely focused on its customers. As the first telecoms company to be accredited with the Customer First Award highlights this. As a result, we knew this was the right move to make. I am very confident the transition will be a smooth one and our customers will be more than satisfied.”
Added Alan Snelling, director of CI Wholesale: “Investment in our customers is key, mixed with Chess’ proven track record at making such successful acquisitions, we knew this flexible deal would give us the best value for us, and more importantly, our customers.”
Chess chief executive, David Pollock, commented: “We now have thirty three acquisitions under our belt and we are continuing to consolidate the telecoms sector. 2009 is a great opportunity for growth for Chess. On top of our successful acquisition strategy, our organic sales are booming.”