Nexus Telecommunications

Advised the Shareholders of Nexus Telecommunications on its sale to Elitetele.com

Background

Nexus Telecommunications has been a Knight Corporate Finance (“Knight”) client since 2010, with Knight originally undertaking a review on behalf of Finance Yorkshire. We then followed that by undertaking a strategic review on the business in 2013 with a view to growing value ahead of an exit. In 2016, Knight completed an update on the strategic review, agreed a timetable to start an exit process, and undertook vendor financial due diligence in order to prepare the business for sale.

Process

Having worked with Nexus for a number of years, Knight highlighted Nexus’ strong, long-standing customer relationships and high-level service offering as key to ensuring a competitive sales process. Whilst finalising the vendor financial due diligence, Nexus were approached by Elite who, valuing the businesses high service culture and great reputation in the market, made an above market-rate offer that was significant enough for Nexus to agree exclusivity without completing a full marketing process.
Elite were provided with the internal vendor financial due diligence report whilst agreeing the heads of terms for the transaction. Knight had dealt with Elite on a number of previous acquisitions, and knew that this approach would best manage the diligence streams and ensure that the valuation expectations would remain acceptable throughout the process.
Paul Billingham and Tom Jones of Knight managed the process from start to finish and were able to draw on sector expertise, prior experience of dealing with Elite, in-house due diligence experience and M&A know-how. Alongside Paul Plaxton of Gosschalks, who provided legal advice to the shareholders, Knight managed the process and negotiated a deal that was acceptable to all parties.

Result

After initially starting the disposal process in Late 2016, the transaction with Elite completed in May 2017, with Elite acquiring the entire issued share capital of Nexus.
Following the transaction, Rob Sims, Chief Executive Officer of Nexus, will remain with the business after the acquisition as part of the group leadership team and Nexus will be rebranded as Elite.

“We have been working with Knight for a number of years, they understood our business and the aspirations of the shareholders, and helped to unlock value in our business that was eventually realised as part of the disposal to Elite. Knight managed each aspect of the sale process and their experience and relationships with both the buyer and our team proved fundamental in ensuring the transaction completed. The shareholders are all delighted with the outcome and Knight’s involvement, I’m also very excited about the opportunity to join Elite as part of the group leadership team.”
Rob Sims, Chief Executive Officer at Nexus Telecommunications