UK firm Kingston Communications has acquired the UK-centred operations of Milgo Solutions, a communications solutions provider, from US-based venture capital company Platinum Equity for £23.4m on a cash and debt-free basis.
Kingston will help finance the acquisition through the acquisition of 7.2m new shares at 138p each.
Milgo Solutions provides sales and technical skills in the data communications and managed network services arena. Milgo has a strong national and regional presence which will complement the structure of Kingston's established regionally focused networking and business solutions activities.
Kingston's business-to-business solutions division already offers a broad portfolio of voice, data, internet and mobile services from seven centres across the UK. It already provides data-networking solutions for clients including Cisco Systems, Citrix Systems, Compaq Computers and 3Com. Kingston’s seven metropolitan networks and a national broadband infrastructure which is nearing completion support these activities.
Kingston Chief Executive Steve Maine said: “This is a very important strategic acquisition for Kingston. Milgo Solutions both complements and enhances our existing voice and data-networking offering and accelerates Kingston's proposition in the provision of end-to-end solutions for businesses.
Milgo Solutions was established in 1998 and has over 200 employees.