Microlease, the UK-based test and measurement rental company, acquired the European operations of its major US competitor, Telogy Inc.
According to the company, the deal is in line with a three-year strategy of organic growth and acquisition and will firmly consolidate the Microlease’s position as the number one test and measurement rental business in Europe. The company expects to boost its turnover by around £5m, lifting it to in excess of £30m per annum.
Behind the acquisition, there is the belief that Telogy’s success in the defence and aerospace industry will complement the Microlease‘s strengths in the telecoms sector. An official statement explains that the deal “will significantly increase both its assets and expertise in this market area and will provide European customers of both companies with more choice, specialist knowledge and enhanced services”.
Comenting on the deal, Microlease CEO, Nigel Brown, said: “Businesses in our target sectors have found that they can reduce capital expenditure by increasing rental/leasing requirements. They are also protecting and optimising existing investments by careful asset management. We expect these trends to continue as customers make plans for the recovery – and for further opportunities in these areas to arise as growth returns.
“This acquisition creates an exciting and timely opportunity for Microlease to further expand its offering to customers – to diversify and accelerate growth in accordance with our strategic plans”.
These acquisition “is believed to be the first stage in the company’s ambitious plans” and follows the recent £19.5m debt financing facility from Lombard Business Finance and Royal Bank of Scotland.