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.

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." ®