Gamma Communications acquires 'strategically important' stake in HFO

Communications services business Gamma Communications has acquired a "strategically important" stake in German outfit HFO.

Gamma snapped up 80% of HFO on Thursday for €20.4m and has an option to acquire the remaining 20% of the company over the next three years.

The AIM-listed group highlighted the importance of the transaction, giving it a foothold in Germany - in line with its ambition to build on its success in the UK by expanding into Europe.

The acquisition was expected to be earnings enhancing immediately from completion.

Chairman Andrew Taylor said: "The acquisition of HFO provides Gamma with a fantastic opportunity to enter the German market - one of the largest but under-penetrated Cloud PBX markets in Western Europe."

As of 0945 BST, Gamma shares were up 5.85% at 1,354.90p.