Redstone Telecom Acquires DIALnet plc
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[London, ENGLAND] U.K. communications company Redstone Telecom announced Wednesday its acquisition of DIALnet plc, a business ISP with a strong focus on the educational market in the U.K.
To pay for the acquisition, Redstone Telecom will issue over 4.85 million new ordinary shares and £1.5 million (US $2.17 million) in cash from its existing resources.
The latest acquisition is one of many recently, Redstone Telecom having acquired Pure Networks Limited and its subsidiary Pure Telecommunications for £5.6 million (US $8.12 million) in August, along with interactive voice services company Isomatrix (UK) Limited for £6.0 million (US $8.7 million).
Redstone Telecom views the purchase of DIALnet, an independent Tier 1 ISP, as a strategic acquisition. DIALnet will provide a backbone Internet network, a range of services and plenty of Internet skills to boost the group's growing portfolio.
Graham Cove, chief executive of Redstone Telecom, said that the acquisition of DIALnet was fundamental to his company's transformation into an integrated broadband communications provider.
"We have now assembled all of the component parts of the DSL service we will launch when unbundling occurs in July next year," noted Cove, adding that Redstone Telecom will be integrating voice, data and Internet elements into a single package for its target SME market.
In August, Redstone Telecom published unaudited financial results to the end of June, showing group turnover up by 144 percent to £17.8 million (US $25.8 million), but with losses doubling to £2.9 million (US $4.2 million).