Digiweb to take over Smart Telecom

Smart Telecom to Exit Examinership via Investment from Digiweb

Transaction paves way for the creation of the leading independent Irish telecommunications company

Dublin, Ireland, November, 2009 – Smart Telecom announced today that Digiweb, the Irish national telecommunications and managed services provider, intends to acquire the entire customer base and assets of Smart Telecom (‘Smart’) an Irish provider of voice, data and media communications services. The intended investment by Digiweb, which is subject to approval by the Irish Commercial Court, will allow Smart to exit from Examinership and become part of the Digiweb Group. John McStay, of McStay Luby, Examiner for Smart Telecom has confirmed the terms of the Investment from DigiWeb. The proposed combination will create the leading, independent Irish telecommunications company and will significantly enhance the scale and scope of the combined Digiweb-Smart service offering.

Transaction Highlights


Ø Combines Smart’s leading LLU infrastructure and Next Generation IP network with DigiWeb’s leading datacenter and hosting platform and national wireless infrastructure


Ø Total subscriber base of 40,000 residential, 1,000 business, corporate & Government customers and over 12,000 web hosting and data center customers.


Ø Brings together two EBITDA positive businesses with annual revenue approaching €40million and over 150 employees


Ø Consolidates the telecoms market creating a stronger service provider offering a broader range of service to existing and prospective customers.


Ø Smart will become part of the DigiWeb Group, will retain the ‘Smart’ brand and will continue to build on its position as a leading provider of voice, data and media services in Ireland.

Smart entered the Examinership process on August 31st, 2009 in order to restructure its balance sheet and secure a strategic investment. The Investment from DigiWeb, which is subject to Court approval, is expected to be finalized by the beginning of December 2009. The Smart Board of Directors and secured lender group are supporting the transaction.

DigiWeb
DigiWeb is one of Ireland's leading telecoms and internet services providers, offering wireless and fixed broadband services, phone services and web hosting services. DigiWeb operates the largest wireless broadband network in Ireland and is Europe’s second largest Satellite broadband provider.
[Further detail]



Smart Telecom
Smart Telecom is a leading Irish provider of voice, data and media services to residential, government and corporate customers. Smart has a national reach and operates the only ‘Next Generation Network’ (‘NGN’) in the country making it Ireland’s fastest broadband provider.

Smart currently serves approximately 12,000 residential and 500 corporate, government and medium sized business customers throughout Ireland. This transaction will have no impact on the underlying Smart business which will continue to provide high quality services to a growing customer base. Smart remains focused on expanding its best in class NGN providing Ireland’s fastest broadband service.



Colm Piercy, CEO, Digiweb, commented: “We are excited about combining the Smart business with our own service offering to enhance our service capability for our customers. We welcome the Smart employees to our team and, together with them, look forward to growing our combined customer base across each of the residential, corporate and Government sectors of the market.”

NAME, TITLE, Smart Telecom, added concluded “We are delighted to combine our existing business with DigiWeb. The scale of the combined company will allow us to expand our product offering and service capabilities to our existing customer base.”

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