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KCOM
Oakley advised on disposal and outsourcing deal for KCOM
Completed Transactions - KCOM Group Logo
Sector:
Technology
Transaction Type:
Disposal
Date:
January 2010
Deal Value:
Undisclosed

Oakley Capital Corporate Finance (“Oakley”), the mid-market Corporate Finance and Corporate Broking specialists, advised KCOM Group plc (“KCOM”; “the Company”) on the disposal and multi-year outsourcing of its ICTmaintenance division to Phoenix IT Group plc (“Phoenix”; “the Company”). The deal was announced on 3 February as a split contract exchange and completion, which has just taken place.

Oakley ran a competitive process for KCOM in order to identify the best partner for its ICTmaintenance division. Under the deal with Phoenix, 142 KCOM employees – principally field maintenance engineers – will transfer to Phoenix from 1 March 2010. Phoenix will supplyKCOM under a multi-year outsourcing agreement with maintenance support services. In addition, Phoenix is buying a subsidiary of KCOM which includes certain field maintenance contracts.

Phoenix will then provide these customers with maintenance services on a direct basis. The price paid for this subsidiary is £1.8m on a debt free and cash free basis, which was paid on completion.

The process was led by Daniel Havercroft, Director with Oakley and Chris Godsmark, Joint Managing Partner. The project is the latest development in a long relationship with KCOM for Chris and Christian Maher, Joint Managing Partner, which dates back to the IPO of KCOM in 1999 and, more recently, a strategic review for the Board in 2008 and ongoing retained corporate broking services.

Daniel Havercroft said:

“the process for KCOM was technically challenging and highly detailed, because the choice of partner depended very much on the specific services provided, including service level agreements. Throughout the negotiation of the complex agreements, both KCOM and Phoenix approached the relationship in a highly professional manner. We were delighted to have assisted in what forms the latest step in the business transformation of KCOM into an ICT managed services business.”

The deal is the 19th completed transaction for Oakley since the business division of Oakley Capital was launched in July 2007. Oakley provides M&A and Corporate Broking advice to mid-market corporate clients with a value typically of up to £500m, in sectors including technology, telecommunications, media and financial services.

For more information please contact:

Daniel Havercroft, Managing Director
Chris Godsmark, Partner
+44 207 766 6900

*Completed by Oakley Capital Corporate Finance

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