James Cowper Kreston Corporate Finance provides transaction support to Babble on its double acquisition of Midland Comms and a carve-out of the IT MSP business of Cloudstream Technology Limited

Our Corporate Finance team recently provided financial due diligence to leading UK telecoms provider Babble on its double acquisition of Midland Comms and a carve-out of the IT Managed Service Provider (MSP) business of Cloudstream Technology Limited.

Backed by Graphite Capital, Babble continues to establish itself as a leading UK Cloud Service Provider (CSP) with scale in both Communications and IT.  The two new acquisitions collectively add £4.5m of revenues, taking Babble’s overall revenue run rate to over £100m per year.  Babble now has more than 18,000 customers, primarily in the mid-market space, with a sizable and growing base of enterprise customers.

Tewkesbury-based Midland Comms has served SMEs across the Midlands for nearly 50 years, providing more than 500 customers with communications solutions.

The IT Managed Service Provider (MSP) business of Fife-headquartered Cloudstream Technology Limited, has more than 350 customers across Scotland, the North of England and Northern Ireland.

Both acquisitions complement Babble’s overall Cloud Service Provider offering, which is underpinned by two business divisions: Talk, which brings people, businesses, and places together, through mobile, UC (unified communications) and contact centre solutions and Tech, which powers and protects UK business with a robust suite of security solutions, IT support (MSP), and Microsoft offerings. 

Matt Parker, CEO of Babble, said: “These two strategic acquisitions significantly strengthen our position as the only UK Cloud Service Provider of both Comms and IT solutions at scale. They bring high-quality retained customers and fantastic, expert people into Babble. This also further extends our geographical reach across the UK, bolstering our ability to offer nationwide coverage with local support to give customers the best possible levels of service.”

The team at James Cowper Kreston was led by Brad McAvoy, who commented, “We were very pleased to work with the team at Babble for a third time, supporting them with their acquisition strategy as they build a leading national Cloud Service Provider.”