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(Sharecast News) - Gamma Communications posted a rise in first-half profit and revenue on Monday, underpinned by strength in its German businesses.
In the six months to the end of June, pre-tax profit increased 15% to £50.1m on revenue of £330m, up 4% on the same period a year earlier.
Gamma said Germany delivered strong growth as demand for cloud communications solutions accelerated across both its channel and digital direct businesses. Meanwhile, the Service Provider business continued to expand internationally, including across APAC, and through partnerships with leading global technology providers.
The Enterprise segment saw "significant" contract wins across continental Europe and the UK, as well as notable contract extensions, it said. However, challenging markets and pricing pressure persisted in UK SME, although demand for cloud and connectivity solutions remained strong, Gamma said.
Gamma agreed last week to be taken over by private equity firm Epiris in a £1.02bn deal. Under the terms of the acquisition, Epiris will pay 1,120p per share in cash. However, a report by the Sunday Times over the weekend suggested that Dutch private equity firm Waterland is planning to gatecrash the deal by formally launching a higher offer.
Gamma confirmed last month that it was in preliminary talks with Waterland about a possible takeover that would involve telecoms services firm Giacom buying some of its business divisions. Under UK takeover rules, Waterland has until 1700 BST on 18 September to either announce a firm offer or walk away.
At 0940 BST, the shares were 1.2% higher at 1,170p.
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