DEAL ANNOUNCEMENT: WELLTEL/ATS

Capital Step funds leading Irish telecoms provider Welltel’s acquisition of ATS, as part of its on-going “buy and build” growth strategy.

Capital Step has successfully funded Welltel, one of Ireland’s leading business telecoms providers, in its acquisition of specialist phone system and telecom service provider ATS, whose clients span the Irish Enterprise and Government sectors.

The ATS acquisition represents Welltel’s second in as many years, as the Company continues to forge ahead with its ambitious growth strategy within the enterprise communications space under founding CEO Ross Murray. The Company provides cloud-based and on-site telecommunications solutions, including VoIP, ISP and Unified Communications, to over 3,000 Irish businesses.

Bespoke communication systems provider ATS’s high-profile client base includes The Department of Social Protection, the Irish Stock Exchange and The Aldi Group, presenting an excellent platform for future synergies and growth for the Group.

Capital Step’s Revenue-based investment in Welltel represents an alternative form of acquisition capital to traditional private equity that is highly value accretive to shareholders through its non-dilution and non-control features. Furthermore, as acquisitive companies such as Welltel identify future targets, Capital Step is able to upsize its investment in order to assist in the pursuit of such “buy and build” strategies, allowing shareholders to avoid incurring expensive equity dilution along the way.

Jonathan Schneider of Capital Step commented:

“It’s been a pleasure dealing with a passionate and hands-on entrepreneur such as Ross from day one. Our Royalty solution is perfectly suited to his “buy and build” growth strategy and we hope this is the first of many more transactions together. We are thrilled to be partnering with such a fantastic business that has a proven track record of innovation, delivery and putting its customers first.”

Ross Murray, Welltel’s founding CEO had the following to say:

“The financing provided by Capital Step was an essential part of our recent fundraising that allowed us to raise the finance required without traditional equity dilution. We were really impressed with how quickly Jonathan and his team understood our business and with how quickly they moved from agreeing the deal through to completing it. I am delighted we engaged with Capital Steps and look forward to working together in the future”.

June 2017, London, UK.

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