Irish telco and cloud services firm 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.

According to Magnet Networks, its business division will have 11,000 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 Group, which booked a loss of €10m and saw its turnover slump by almost 19% in 2014, said that the sale of its retail business division forms part of its strategic focus on the national rollout of its new 4G Long-Term Evolution (LTE) network.

Established in 2004, Magnet Networks, with the support of its parent Columbia Ventures Corporation (CVC), has invested over €120m in developing its telecoms network, and the firm counts Amazon, ESB, Adobe and Fáilte Ireland among its clients.

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

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Step Change

Commenting on the acquisition, Mark Kellett (pictured), CEO of Magnet Networks, said: “The acquisition of Imagine’s retail business division is a step-change acquisition for Magnet.

“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. 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, Magnet Networks 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.

Speaking about 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.

He added: “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.”