Midwich paying £27.5m for telecoms tech firm – Business Weekly

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Audio visual business Midwich Group is paying £2.75 million cash for Nimans – a UK based specialist distributor of unified communications, telecoms, collaboration and AV technologies.
A Nycomm Holdings subsidiary based near Manchester, Nimans was founded in 1981 and has built a strong presence and reputation in the UK telephony hardware market.
In recent years the business has expanded successfully into new market areas such as unified communications, VOIP solutions, security and networking.
Key brand relationships include Yealink, Jabra, and BT. The company trades with over 2,500 telephony, IT and retail customers and employs more than 200 staff.  
In its latest audited financial statements, for the year ended December 31, 2020, Nimans generated consolidated revenues of £114.3 million and profit before tax of £5.8m.  Net assets (excluding net cash balances) were £11.4m. 
The deal has been undertaken on a cash free/ debt free basis.  Completion is subject only to FCA approval and expected in the first half of 2022. Midwich’s share price on AIM was 34p and 5.67 per cent to 634p after the news broke.
Stephen Fenby, Midwich Group managing director, said: “Nimans is a long-established business with a great reputation for technical excellence, customer service and logistics.
“Its traditional telecoms market has experienced significant change in recent years, bringing with it new revenue opportunities which the company has developed strongly, in areas such as unified communications, video conferencing, security and networking. 
“Midwich continues to grow its UC offering and Nimans brings further opportunities to the group, in terms of skills in new product and technology areas, service offerings to the trade, a large new customer base and new vendor relationships. 
“I believe that the combined skill sets and capabilities of Midwich and Nimans bring a unique offering into the market with the ability to provide complex solutions involving multiple technologies.”
Midwich says the initial consideration of £16.5m is payable on completion of the acquisition and will be followed by two fixed instalments of £5.5m each after 12 and 24 months, respectively.
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