Mitie expands mobile telecoms capability with the 8point8 acquisition

Mitie Group plc (“Mitie”) announces today that it has acquired 8point8 Support Limited, 8point8 Training Limited and Vantage Solutions Limited (collectively “8point8”), a leading provider of design and construction services in the UK, predominantly for mobile telecoms tower infrastructure. Total consideration is £10m and the acquisition will be accretive to earnings and funded through existing facilities.

AI Summary
  • Mitie aims to become a leading Telecoms Support Services company through strategic acquisitions.
  • 8point8's integration will boost Mitie's capacity for end-to-end service delivery in telecoms.
  • 8point8 generated £18.3m revenue and £0.6m profit before tax in 2021, recovering from COVID disruptions.
  • Revenue is expected to grow as the telecoms industry expands 5G networks and replaces Huawei infrastructure.
  • Mitie will pay £10m in cash for 8point8, funded from existing facilities.

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With the growing demands of the 5G rollout, network upgrades and passive infrastructure investment, Mitie’s strategy is to build a leading Telecoms Support Services company, providing acquisition, design and construction (ADC) services, and maintenance to the mobile telecoms tower infrastructure sector. Following Mitie’s recent acquisitions of DAEL Ventures UK and P2ML Limited, integrating 8point8 into its telecoms division will give Mitie greater capacity to self-deliver additional end-to-end services.

8point8 also includes two associated businesses, 8point8 Training – an industry leading training provider – and Vantage Solutions – a specialist contract lifting business. Together, these capabilities will provide Mitie with the opportunity to set the standard in health and safety for the industry whilst adding the capacity to increase self-delivery of critical services.

For the 12 months ended 31 December 2021, 8point8 generated combined revenues of £18.3m and profit before tax of £0.6m, with gross assets of £6.2m. Performance since 31 March 2021 has seen 8point8 make a strong recovery from the significant operational disruption associated with the COVID pandemic.

Highlights

  • Revenue is expected to grow significantly as the mobile telecoms industry gears up to establish a full 5G network over the next 3-5 years and replaces the installed Huawei infrastructure.
  • 8point8’s key customers include some of the UK’s leading mobile telecoms operators and will expand our existing portfolio.
  • The consideration of £10m will be paid in cash and will be funded from existing facilities.
  • The management of 8point8 will be joining Mitie Telecoms and Sam Storer, currently MD of 8point8, will be appointed Chief Commercial Officer of Mitie Telecoms.
  • The transaction is structured as an acquisition of three separate legal entities 8point8 Support Limited, 8point8training Limited and Vantage Solutions Limited.

Mitie Group plc (“Mitie”) announces today that it has acquired 8point8 Support Limited, 8point8 Training Limited and Vantage Solutions Limited (collectively “8point8”), a leading provider of design and construction services in the UK, predominantly for mobile telecoms tower infrastructure.

Andy Train, MD Mitie Telecoms