Alternative Networks makes Scalable play

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Alternative Networks makes Scalable play

Alex Scroxton

Networking integrator, IP specialist and Mitel partner Scalable Communications has been bought by comms services provider Alternative Networks in a £7.5m cash deal, plus a deferred £2.5m consideration based on future growth.

Alternative said the acquisition, which is expected to be earnings enhancing for the financial year to 30 September 2011, was a key component of its plans to expand into managed data networking services.

It also gives the business comms provider a foothold in the SMB sector and adds kit from Extreme and Juniper to its line-up.

"We have been following Scalable for some time and recognised the value it can deliver to our business and the scope it offers to achieve this objective," said Alternative  chief executive James Murray.

"We will now be better placed, not only to cross sell these services across a growing customer base, but to make further complementary acquisitions," he added.

Scalable made sales of £12.5m in the last period for which figures are available, representing annual growth of 17%. Alternative's last published results for the six months to the end of March, saw sales up 3% to £47m and EBITDA of £5.5m.


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