Deal Overview
- Lead adviser
- FTSE 250-listed acquirer
- Long-term client relationship
Momentum Corporate Finance LLP (“Momentum”) is delighted to announce its latest transaction, having advised the shareholders of Silver Telecom Limited (“Silvertel”) on their sale to discoverIE Group plc (“discoverIE” or the “Group”).
Founded in 1997, Silvertel is a UK-based designer and manufacturer of differentiated, high performance Power-over-Ethernet (“PoE”) modules and complementary products for global industrial electronic connectivity markets closely aligned with the Group’s target markets. Silvertel, which is based in Newport in South Wales, sells its products in over 70 countries, will be part of the Magnetics & Controls division retaining its distinct brand identity.
Silvertel delivered an exceptional performance in the year to 28 January 2023, with revenues of £13.5m, a pre-tax profit of £4.4m and gross assets of £4.6m. Performance in the current year is expected to be closer to the 2022 financial year, where the business reported revenues of £8.4m and pre-tax profit of £2.2m. It was acquired for initial cash consideration of £21 million on a debt-free, cash-free basis. In addition, an earn-out of up to £23m will be payable subject to Silvertel’s performance over the next four years. Completion of the acquisition is subject to approval under the UK National Security & Investment Act, which is expected to be received later this quarter.
