The acquisition will give Redstone increased capacity and scale in the converged market, with a more substantial presence in key vertical markets

8th February 2007 – Redstone, the national IT and communications solutions provider, today announces that the Group has agreed to acquire the business of Comunica for a total consideration of up to £22 million. This will be the fourth acquisition in eight months for the Group.

The acquisition complements Redstone’s existing business, and will substantially increase the position of the company as a leading UK IT and communications solution provider.

Comunica will bring further specialist network and communications infrastructure solutions, providing design, implementation and project management services. It has a largely blue-chip client base across industries including financial and professional services, retail, energy, media, transport and the public sector.

Martin Balaam, Chief Executive of Redstone, commented: “The acquisition of Comunica is in line with Redstone’s strategy of making select acquisitions while retaining a focus on improving the profitability and growth of the Group’s existing activities. The Acquisition increases Redstone’s reach in the Converged Solutions arena. 

“Comunica’s success in winning business from blue chip firms for large infrastructure projects sits ideally with Redstone’s own successes in converged solutions with securing business from both the corporate and public sectors.  Redstone is eager to work with Comunica’s existing customer base, which brings further opportunities for cross-selling the Group’s services.”

Balaam and his team believe that the acquisition provides Redstone with the following principal strategic benefits:

• Removal of a significant competitor from the converged solutions market;
• Enhanced prospects due to its increased capacity and scale, with a more substantial presence in key vertical markets;
• Increased purchasing power with suppliers, which is expected to help achieve increased revenue growth and win new accounts;
• Significant opportunities to cross sell Redstone’s other products and services to Comunica’s customer base.

Redstone also gives notice of an EGM to be held on 5 March 2007 at the offices of Osborne Clarke, One London Wall, London EC2Y 5EB at 11.00 a.m., at which resolutions will be proposed for the purposes of implementing the Placing.

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