Facilities manager Mitie Group has acquired 8point8, a British design and construction services provider for mobile telecommunications tower infrastructure, for £10.0m in cash, funded through existing facilities.
Mitie said on Tuesday that with the growing demands of the UK’s 5G rollout, the addition of 8point8 to the group was expected to be accretive to earnings. For the 12 months ended 31 December, 8point8 generated combined revenues of £18.3m and pre-tax profits of £600,000, with gross assets of £6.2m. Revenue was also expected to “grow significantly” over the next three-to-five years as the mobile telecoms industry replaces the currently installed Huawei infrastructure with a full 5G network.
In addition to the core business, Mitie also acquired two associated businesses, 8point8 Training and Vantage Solutions, a move the FTSE 250-listed group said would provide it with the opportunity to “set the standard” in health and safety for the industry whilst also adding the capacity to increase self-delivery of critical services.
Mitie Telecoms’ managing director Andy Train said: “The acquisition of 8point8 substantially increases our capacity within the fast-growing mobile telecoms sector and adds another well-respected team to the Mitie Telecoms business.
“We are now one of the largest Telecoms Support Services businesses in the UK, with strong capabilities to support all aspects of cell site acquisition, design, construction, and ongoing site maintenance, allowing us to better serve our existing customers and to continue to add new clients as the rollout of 5G in the UK gathers pace.”
