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Your Communications buys Eurocall

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Your Communications has bought rival Manchester telco Eurocall for £42m.

Your's parent company, United Utilities, is paying £30 million in cash immediately and £12 million in two stages over the next 18 months.

United Utilities expects to fund the acquisition from extra revenues generated by the enlarged company. Your will make significant savings by integrating Eurocall, but says it is "too early to call" on redundancies. Around 650 people work for the enlarged group.

Eurocall supplies telecoms services to around 15,000 small and medium-sized businesses. It is cashflow positive and has annualised revenues of around £55 million.

Lump it together with the £162m turnover generated by Your Communications last year and the newly enlarged telco expects to have revenues in excess of £210m.

Hugh Logan, Your MD, reckons the acquisition will help his business become "financially independent... it will further enhance our position as a leading alternative to BT and other business to business operators." ®

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