Chepstow-based TXO Systems has bought another telecoms business based in the West Midlands.

TXO Systems, which has offices at Newhouse Industrial Estate, Chepstow, is a global market leader in telecoms asset management.

It was recently recognised within the top 200 biggest companies in Wales.

It has signed a deal to acquire MMX Communications, based in Solihull.

The deal grows TXO’s share of the UK market, through the expansion of its services.

TXO is committed to South Wales and employs more than 120 staff from the area.

Its team serves more than 1,000 customers globally, who include 75 per cent of the top 100 telecoms companies. Virgin Media, BT, Telefónica and AT&T are among some of its long-term clients.

Founded in 2005, TXO is a local success story. The business has delivered impressive year-on-year organic growth, driven by international expansion and a global customer base.

The deal creates a combined business with an annual turnover approaching £40m and 225 employees operating across five continents, from offices in the UK, Brazil, the US and Australia.

TXO Group CEO Darren Pearce said: “The synergies between the two businesses present significant opportunities for continued growth and the acquisition marks the start of a new chapter in TXO’s success story.

“MMX services are complimentary to ours. Together they bring a new dimension to our customer offer and gives us a unique position in the market. We’re excited about what these new capabilities mean for our customers.”

TXO is key to the circular economy in the telecoms sector. Through its services it greatly extends the lifetime of telecoms equipment. Its asset management services ensure there is a market for used network equipment. Every year, well over half a million telecoms parts are sustainably acquired, redeployed, resold and recycled by TXO. The addition of MMXs’ operations, which includes repair services, completes the circular economy loop.

The announcement comes at a time when the digital sector is growing faster than the economy. On the back of a growing thirst for data and connectivity, and 5G emerging from the shadows, the capacity, quality and reliability of network infrastructure has never been more important. The services of TXO and MMX are essential to this.