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Octopus and YFM invest GBP3.95m in Bluebell Telecoms

Octopus Investments and YFM Private Equity have developed a GBP3.95m joint financing package to help Bluebell Telecom expand and incorporate Callstream, the inbound telephony specialist, into the newly formed Bluebell Telecom Group.

Bluebell Telecom, a provider of business voice and data services, has built a reputation for managed services in the retail, hospitality and care markets.
With Callstream joining the group, Bluebell will now have access to a cloud-based platform for managing inbound traffic. Its technology provides customers with cost effective management of external and internal communication.

“We elected to work with both YFM Private Equity and Octopus in order to provide access to an innovative combination of debt and equity which will support our buy and build strategy moving forward,” says Mick Crosthwaite, joint managing director of Bluebell.
Nigel Barraclough, investment director, YFM Private Equity, says: “We look to invest in fast growing businesses at a transformational stage in their development and Bluebell is a good example of this. Working together with Octopus to support Bluebell’s plans for growth in these challenging economic times has been particularly rewarding. We believe that the Bluebell team’s vision of developing a leading integrated telecoms group is an achievable one. In the period post banking crisis the innovative debt/equity structure will provide a stable expandable funding foundation on which Mick and the team can build. All of us involved are looking forward to implementing Bluebell’s buy and build strategy.”

Stuart Nicol of Octopus adds: “This transaction with Bluebell has all the features that Octopus looks for in the companies it backs. The recurring profitable cash flow characteristic of telecoms resellers and the common focus on customer service at Bluebell and Callstream resonate with our own objectives and values. The low customer loss rate enables them to focus on new customer growth and the introduction of Paul Banner and Michael Norden as chairman and financial director adds further to an already strong team. We look forward to helping them grow quickly and safely.”

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