North West technology group, So Purple, has offloaded its broadband division to Aim-listed firm, Coms PLC, as it seeks to prioritise its wi-fi offering.
The £800,000 deal sees Coms PLC acquire the 4000 broadband customers and assets of So Purple Tech Ltd (trading as ADSL24). These include its cloud-based mail and hosting. The £800,000 is broken down into £50,000 cash and £750,000 in ordinary shares.
“We are delighted that we have finalised this transaction and this will give the Company some further upsell opportunities on our now broader range of services that we offer. We have been negotiating this transaction for some time and negotiations over the past few days have been made particularly challenging with our share price increasing,” stated Dave Breith, CEO of Coms.
“We are nonetheless delighted at the increasing confidence investors have in the future of our Company”.
So Purple Tech Ltd had gross assets of around £40,000 at the end of June 2012, with the ADSL24 network generating a monthly gross margin of approximately £20k on revenues of £75k.
