Voice and data service provider Daisy Communications is forking out £10.45m for BNS Telecom, its second acquisition this month.
The offer of 20 pence per share, which represents a premium of roughly 220% on the price that BNS stock last traded at before it delisted from AIM on 3 June 2009, had been agreed by its directors.
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"This offer makes great sense for Daisy, given the scale and position of BNS within the UK SME market," said Matthew Riley, Daisy CEO.
BNS, a voice over IP telecoms carrier, and reseller of fixed and mobile lines, minutes, data, hardware and services is based in Northumberland and was formed in 1996.
Riley said the BNS acquisition "is another step towards the Daisy Group consolidating this fragmented sector."
Directors at BNS decided that its market cap on AIM did not reflect its true value and ceased trading on the exchange last summer.
Shortly after, founder and chief exec Gary Moat, who owned 48.6% of the firm, expressed plans to sell his shareholding and the executive team decided to approach potential suitors to offload the entire operation.
Results for the 12 months to 31 July 2009 indicate the progress BNS has made with sales up 13% to £36.9m and EBITDA rising from £130,000 a year earlier to £3.2m.
Barry Moat, BNS non-executive chairman, said the 20 pence offer gave investors a healthy premium on the last share price, adding there was no guarantee they could get a better return in the "short to medium term".