Comms player Gamma targets European market with Dutch acquisition

Firm plans to use acquired business as a base for expansion

UK telecoms group Gamma Communications has acquired Netherlands-based Dean One for €27m (£24m), in a bid to replicate its success in the UK market.

Dean One provides unified comms services to the Dutch market, primarily through the channel.

With a headcount of 60, its FY2017 revenue was €15.8m, with EBITDA at €800,000.

Gamma added that Dean One was selected as an acquisition target because it focuses on products with which Gamma already has experience.

"The market penetration and growth rates in sales of cloud PBX in the Netherlands is similar to that in the UK, where Gamma has a track record in driving sustainable growth," a company statement said.

"The Gamma management have known the Dean One business for a number of years. It has a very similar product set to Gamma, selling cloud PBX, SIP trunks, data products and mobile to primarily SME businesses via a network of over 500 channel partners."

Newbury-based Gamma's 2017 financial accounts saw it log revenues of £238.54m, up 12 per cent year on year. EBITDA also grew by 27 per cent to £39.6m.

Its CEO Andrew Taylor revealed that the firm sees Dean One as a strategic European base to further stretch its geographic reach in the medium term.

"We are really pleased to announce the acquisition of Dean One. It is an ideal way for us to expand," he said.

Dean One's co-CEO Klaas Bottema said he shared Gamma's vision of EMEA expansion.

"Gamma is the right home for Dean One, as we look to accelerate the success we have seen in the Netherlands. They have tremendous technical and market expertise, and a track record in building and managing the channel," he added.

"With their support, there is no doubt that we can grow more quickly and move into other markets which we don't currently serve."