Acquisition
July 18 2006 - 7:11AM
UK Regulatory
RNS Number:3606G
Elitel Telecom S.p.A.
18 July 2006
For Immediate Release 18 July 2006
Elitel Telecom SpA
Acquisition
Elitel Telecom S.p.A. ("Elitel") (AIM: ETM), the independent Italian
telecommunications group, is pleased to announce that it has signed an option
to acquire the data centre branch of Blixer Net Services S.r.l. ("BNS") with an
agreement to pay an annual rental of the business and operations of BNS for
Euro200,000 per annum until 2011 (the "Agreement"). The Agreement grants Elitel
the right to continue to rent the business beyond 2011 or to then acquire the
business for a final cash payment of up to Euro2.0 million, less the amounts
already paid as rental, at any time until 2016.
Elitel offers 'housing & hosting' services to its clients through two data
centres in Milan and Rome. The incorporation of the BNS business with Elitel,
strengthens Elitel's integrated voice and data offering through the utilisation
of BNS' client base in 'housing & hosting' services coupled with the use of
their data centre in Bergamo. The addition of a third data centre and of a
team of dedicated professionals will enhance Elitel's capability of servicing
its existing data clients while offering a wider number of services to its voice
clients.
BNS Data Centre branch generated revenues of Euro1.92million in the year ended 31
December 2005, including sales to Elitel of approximately Euro0.58 million.
BNS is owned by Gengar Servicos de Consultoria Limitada, which is wholly owned
by Kiwi II, Elitel's majority shareholder.
Commenting on the acquisition, Federico D'Este, Chief Executive of Elitel, said:
"We are delighted to enhance our Data Centre business through this agreement.
The business has a strong client base and the team that is joining us will help
further develop this area that represents the natural completion of our
integrated voice and data offer."
Enquiries
Elitel Telecom S.p.A +39 02 441 0410
Federico d'Este (Chief Executive)
Nicolo Zanchi (Group Corporate Development Officer)
Buchanan Communications +44 (0)20 7466 5000
Jeremy Garcia
Charles Stanley Securities +44 (0)20 7149 6000
Russell Cook/Freddy Crossley
Notes to Editors
Elitel is an independent Italian fixed line telecommunications group. It
provides a broad range of voice, data and broadband services, including voice-
over IP ('VoIP'), to both businesses and residential customers. The Group also
provides wholesale telecommunications services to other carriers, international
call services specifically for the Italian ethnic market and telecommunications
services to premium content providers. Elitel's network, which covers the whole
of Italy, is based on interconnection agreements and access through the leasing
of lines from carriers including Telecom Italia and other international
carriers.
By 31 December 2005 the Group's own fixed line customer base comprised more of
69,000 business customers; 175,000 residential customers and more of 9,200 VoIP
end users.
In February 2006, Elitel (www.eliteltelecom.com) floated successfully on AIM,
part of the London Stock Exchange, raising #8.0 million to fund the expansion
of the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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