A communications and telecoms firm has secured a £7.3 million investment to fund its takeover of the leading IT provider to schools across London.

AdEPT Telecom, based in Tunbridge Wells, will use the money from Business Growth Fund (BGF) to help pay for its £12 million acquisition of Atomwide.

AdEPT, which is listed on the junior AIM market for the London Stock Exchange, will support about 2 million people at more than 4,000 schools across the capital following the takeover.

It expects its new acquisition to increase revenues by 19%, having reached £34.4 million in the year to the end of March.

The deal continues a takeover spree at the firm, which acquired Our IT Department in February after securing a £30 million finance deal with the bank.

It bought CAT Communications and Progressive Communications in November.

Its latest takeover has also been paid for by £4.7 million from its existing bank facility.

The £7.3 million investment by BGF is in the form of a convertible loan note instrument and gives it shares in the company. AdEPT also received an investment from BGF in September last year.

“Atomwide is an excellent fit because it gives us a strong market position in IT for education, particularly in London..." - Ian Fishwick, AdEPT Telecom

AdEPT chairman Roger Wilson said: “Following their initial equity investment during 2016, we are delighted to have obtained further support from the team at BGF to work alongside our existing debt providers, Barclays and The Royal Bank of Scotland, and provide funding for the acquisition of Atomwide.

“This gives us the market leading position in IT for education in London.”

Orpington-based Atomwide has 50 staff and made turnover of £7.5 million in year to end of March, with pre-tax profits of £1.9 million.

A further £8 million may be paid for the takeover depending on its performance in the first year.

AdEPT chief executive Ian Fishwick said: “We are delighted to have acquired such a high quality, well-run and profitable business with a strong management team.

“Atomwide is an excellent fit because it gives us a strong market position in IT for education, particularly in London.

“This complements our acquisition of OurIT in February 2017 which is focused on London and South East commercial customers.”

BGF investor Paul Stevens said: “Roger and chief executive Ian Fishwick have built an attractive platform for acquisitive and organic growth.

“The team’s knowledge of the market and track record of delivery are impressive and we are delighted to be supporting the acquisition of Atomwide and the longer-term ambitions of the group.”

BGF is an independent company looking to invest up to £2.5 billion in growing small and mid-sized businesses.

It is backed by five of the UK’s main banking groups – Barclays, HSBC, Lloyds, RBS and Standard Chartered.