Pure Telecom acquires communications group

IRISH-OWNED Pure Telecom, a service provider to the small- to medium-sized business sectors since 2002, has bought NewTel Communications for an undisclosed seven-figure sum.

Acquisition of the group, previously owned by Australian-quoted group Orion Telecommunications, will add €8.5 million to annual turnover of the acquirer.

Set up in 1999 the Orion subsidiary has a client list of 12,000 customers and a call centre based in Citywest.

Under the terms of the deal Pure Telecom will acquire the call centre and the customers of NewTel, which will continue to trade under its existing name.

Established here in 1999, the Orion subsidiary was the Australian group’s largest European operation.

Its British wing, which also forms part of the deal, was set up in March 2003 to provide customer services including billing and payment collection that was carried out by the Dublin operations.

Pure Telecom’s history goes back to 2002, when it was set up in March of that year to exploit the growing opportunities for telecoms providers as deregulation of the sector created opportunities for others to enter the market.

Pure Telecom is privately owned and profitable and its customers include major pharmaceutical companies, government bodies, financial institutions and professional bodies.

Managing director Paul Connell said the group’s financial track record over the years made this acquisition attractive to Pure Telecom.

NewTel is currently showing an operating profit on a month-to-month basis.

Its turnover of €8.5m for the year will lead to potential revenues of more than €15m per annum for the enlarged Irish company, Mr Connell said.