News

Dublin, Ireland • March 5, 2016

Telecommunications and cloud services provider, Magnet Networks, has acquired the Irish retail business division of Imagine Communications Group in an all-cash transaction. The deal will see Magnet Networks become the third largest provider of business telecoms in Ireland.*

The new enlarged Magnet Business division will have 11,000 Small and Medium Enterprise (SME) and corporate customers following the transaction. Magnet will employ 95 people, including the 17 new staff from the acquired business, with plans to hire additional people in the coming months.

Imagine’s sale of its retail business division forms part of its strategic focus on the national rollout of its new advanced 4G Long-Term Evolution (LTE) network*, which will bring much needed competitive high-speed broadband services to businesses and consumers in regional and rural Ireland.

Established in 2004, Magnet Networks, with the support of its parent, Columbia Ventures Corporation (CVC), has invested in excess of €120 million in developing an advanced telecoms network which has enabled the company to acquire a strong reputation in the business telecoms market, counting Amazon, ESB, Adobe, Lidl, Fáilte Ireland and Centra as clients.

The company offers a range of broadband, voice and cloud telephony solutions along with wi-fi, cyber security and managed services. It is headquartered in Dublin with offices in the Galway, London and Pune in India.

Mark Kellett, CEO at Magnet, Ken Peterson, CEO at Columbia Ventures Corporation,
and Jonathan Dalton, Head of Corporate Finance at Key Capital

Commenting on today’s announcement, Mark Kellett, CEO of Magnet Networks, said:
“The acquisition of Imagine’s retail business division is a step-change acquisition for Magnet, placing us as the third largest telecoms provider to the business community in Ireland. Our strategy is to provide a credible choice to businesses of all sizes across Ireland based on the quality of our network and range of services, which we believe are the best in the country. We are delighted to welcome our new customers and staff to Magnet.”

Magnet Networks focuses on a mix of organic and acquired growth and has previously made a number of acquisitions, which it has successfully merged into its operations. In 2005, the company bought wireless broadband provider Leap and later added Internet Services Provider (ISP) Netsource to complement its business division. Three years later it bought Irish VoIP provider, Glantel, and in 2012 it acquired a 90% share of Velocity 1 as it expanded into the UK market.

Magnet will use the Imagine network to provide existing and new business customers with wireless broadband services. As its launch retail customer, Magnet will also leverage Imagine’s new fibre-powered LTE network to enhance the reach and range of cloud telecoms services available to regional SMEs, as part of its efforts to bridge the digital divide.

Speaking of the deal Sean Bolger, CEO for Imagine Communications Group said: “With the industry shift to next generation infrastructure driven by the need and demand for high-speed broadband and IP services, the strategic opportunity and focus of Imagine and its investors is to extend the reach and deliver fibre-based next-gen services to regional and rural communities across Ireland. Key to delivering this strategy, and the full benefit to businesses and consumers, is our open wholesale partnership approach facilitating existing and new innovative service providers.

Magnet’s focus on delivering excellent service, combined with its innovative business solutions and its commitment to bringing these solutions to businesses in regional and rural areas, made it the ideal home for our existing business customers. We wish them, our loyal customers and great business team every success.”

Media Contact: Bernice Burnside, Bvisible, 087 2337366

*Notes to the Editor

– Ranking based on landline telephone provider numbers from the 2015 ICT Business Survey (SME Market). Landline share is the nearest proxy for overall B2B share.

– Advanced 4G LTE is the most advanced global standard for wireless infrastructure used to deliver Fixed and/or Mobile services. Advanced LTE is currently being deployed internationally to replace legacy copper infrastructure and deliver Next Generation Access (NGA) High Speed Broadband services and is a specified and approved technology to deliver NGA services under the European commission’s Digital Agenda for Europe (DAE) and the Irish Governments National Broadband Plan (NBP).

About Magnet

Established in 2004, Magnet provides a range of broadband, voice, VoIP, Wi-Fi, hosting and other cloud solutions to both businesses and consumers.

Headquartered in Clonshaugh in Dublin, it has offices in Galway, London and Pune.

Through its parent company, CVC, it has invested €120 million in developing an advanced telecoms network to and in Ireland, with transatlantic submarine fibre cables and FTTH rollout.

Magnet’s London subsidiary, Velocity1, provides broadband to Wembley and Greater West London enabling a smart city initiative.

For more, visit magnet.ie.

About Imagine Communications

Since 1993 Imagine Communications Group and its associated businesses has been an active participant in the Irish and European fixed, wireless and mobile telecoms markets.

Headquartered in Sandyford in Dublin, Imagine provides fixed and wireless communication services to both business and residential customers. Through its international network the Group provides wholesale services to telecom operators and services providers.

For more, visit imagine.ie.

Irish Times • March 5, 2016

Irish telco Magnet has acquired the Irish retail business division of Imagine Communications in an all-cash transaction. The deal will see Magnet become the third largest provider of business telecoms in Ireland, effectively doubling its customer numbers to 11,000 SMEs and corporates.

This will give it a market share of about 9 per cent, placing it behind Eir and Vodafone. The company was advised by Key Capital Corporate Finance on the transaction.

Magnet will now employ 95 people, including the 17 staff (mostly sales) from the acquired business, with plans to hire additional workers in the coming months. Debt funding for the deal was provided by investment group Blue Bay.

Imagine’s decision to sell its retail business division is part of a strategic shift to focus on the national rollout of its 4G Long-Term Evolution network, which will bring high-speed broadband services to businesses and consumers in rural Ireland.

Established in 2004, Magnet and its parent Columbia Ventures Corporation have invested more than €120 million in developing an advanced telecoms network. Its customers include ESB, Adobe, Lidl, Fáilte Ireland and Centra. The company is also operating in the UK market and has a contract to provide services to online retail giant Amazon at various locations across Europe.

High-speed broadband

Magnet offers a range of broadband, voice and cloud telephony solutions along with hosting and domain services. It has headquarters in Dublin with offices in Galway, London and Pune in India.

Since the economy crashed in 2008, Magnet has pulled back from the residential market. It has stopped offering TV services and now just provides contract-free, high-speed broadband to about 8,000 residential customers.

Magnet chief executive Mark Kellett said the acquisition marked a “step-change” for the company.

“Our strategy is to provide a credible choice to businesses of all sizes across Ireland based on the quality of our network and range of services, which we believe are the best in the country. We are delighted to welcome our new customers and staff to Magnet,” he said.

Previous acquisitions

Speaking to The Irish Times, Mr Kellett said the deal would double the company’s revenues with a “sizable proportion flowing through to Ebitda and cash. I see a bright future for the company but a more focused one.”

Magnet has made a number of previous acquisitions. In 2005, it bought wireless broadband provider Leap and later added internet services provider Netsource to complement its business division. Three years later it bought Irish VoIP provider Glantel, while in 2012 it acquired a 90 per cent share of Velocity 1 as it expanded into the UK.

Imagine Group chief executive Sean Bolger said: “With the industry shift to next generation infrastructure driven by the need and demand for high-speed broadband and IP services, the strategic opportunity and focus of Imagine and its investors is to extend the reach and deliver fibre-based NGA services to regional and rural communities across Ireland.”

Irish Tech News • January 7, 2016

Irish telecoms provider, Magnet, today announced the opening of a new office in Galway to serve businesses across Galway, Mayo, Roscommon, Clare, Limerick, Tipperary, Sligo, Leitrim and Donegal.

Designated as the Magnet’s West of Ireland hub, the office will provide a sales function as well as local account management to companies in the region for Magnet’s full suite of telecoms solutions. These include broadband speeds of up to 350Mb, as well as a range of unique cloud telecom solutions.

Strong Remote Working Culture

The inaugural Magnet Regional Business Barometer*, a study of 600 SMEs in Ireland conducted by Amárach Research last year, revealed the West to have the highest concentration of remote workers. 24% stated they regularly worked from home and 25% on the road. However, take-up of services beneficial to remote working was the lowest when compared to other regions, with only 1% of businesses availing of VoIP, or internet phone, solutions.

Heading up the operation is former head of SME sales for Magnet in Dublin, Phil Clapperton. Speaking at the launch in his new role as Regional Sales Director he said: “The new Galway office is being set up at an ideal time with lots of ambitious local developments underway, from the establishment of the Galway City Innovation District to the redevelopment of the docks area.”

Magnet’s Regional Sales Director Philip Clapperton leads
the opening of New West of Ireland hub in Galway

Clapperton continues: “As a telecoms company with a strong business focus, we want to be in a position to better serve businesses in Galway and surrounding counties with local account management that can efficiently respond to their needs. Furthermore, with such an active remote and mobile working culture, we feel there’s an excellent opportunity to educate businesses about the benefits of cloud services and what Magnet can deliver in that respect.”

Some of Magnet’s existing customers in the region include Macnas, The G Hotel, SmartBay, Merrill Brink and PNO.

Information Evening: VoIP and Hosted PBX

Magnet will host a free information evening in the Galway Technology Centre on January 14th, which will look at how companies can transition to and benefit from VoIP and hosted PBX solutions. The event kicks off at 5.30pm and companies who sign up to Magnet Voice can avail of an offer of 6 months free broadband. Full details and registration can be found here.

Media Contact
Bernice, Bvisible, 087 2337366, 01-8452401

Editor’s Notes
Full details of the 2015 Amárach study can be found here.

About Magnet
Established in 2004, Magnet provides broadband, telephony, VoIP, Wi-Fi, hosting and other cloud solutions to both businesses and consumers. Headquartered in Clonshaugh in Dublin, with a new regional office in Galway, Magnet became the first internet service provider to offer a 1Gb internet service through Fibre To The Home (FTTH).

Magnet was also the first telecoms provider in Ireland to launch a cloud telephony solution that allows users to take and make landline calls on regular handsets, PCs, an online portal and a mobile app.

Through its parent company, CVC, it has invested significantly in fibre connectivity to and in Ireland with transatlantic submarine fibre cables and FTTH rollout. Magnet’s London subsidiary, Velocity1, provides broadband to Wembley and Greater West London enabling a smart city initiative. With Aertv, Magnet has also pioneered online TV in Ireland.

For more, visit magnet.ie.