Keycom, a provider of broadband services to the tertiary education market, is set to acquire several contracts from Catalyst Management, a supplier of converged communications services to universities and NHS Trusts.

The deal is part of Keycom’s plans to increase the number of university residential accommodation broadband contracts and extend its product offering into complementary market areas, such as NHS and key worker accommodation.

Keycom will pay £1.4 million for the assets. The consideration will be settled through a cash payment of £475,000 and loan notes to the value of £725,000 repayable within 12 months.

The acquirer has also raised £580,000 through a placing on PLUS. The proceeds of which will be used to fund the purchases and boost its working capital.

Rod Matthews, executive chairman and CEO of Keycom, said: “I am pleased to be able to announce the proposed acquisition of the Catalyst contracts, which is in line with our previously announced strategy of complementing Keycom’s organic growth with acquisitions.”