Torc Europe, a wholly-owned subsidiary of Torc Telecom, has acquired World Telecom, a British provider of calling card and value-added data services for the corporate and consumer markets, for more than £15 million (€19 million).

World Telecom, which employs 170 people, was placed in administrative receivership earlier this year after suspending its listing on London's Alternative Investment Market (AIM) in December.

The company, which numbers Merrill Lynch, Hogg Robinson, Xerox, Virgin and Cable & Wireless among its clients, had a turnover of more than £25 million last year.

Torc chairman and chief executive, Mr Mark Roden, said the acquisition consolidated its presence in the markets in which it operated. "We will rebuild confidence in the World Telecom brand across the client base and will not allow the company's recent problems to obscure the fact that this is an excellent business operating in a strong growth sector."

He said Torc had devised a turnaround strategy for the company which would involve bringing stability to its workforce and more professional discipline to expenditure and the efficient targeting of resources.

The acquisition will be funded by raising new equity in Torc Telecom worth £7 million. In addition, Chase Manhattan Bank, World Telecom's principal creditor, will take a 10 per cent holding in the enlarged group at a cost of some £2 million to £2.5 million, while Chase is lending the balance of the consideration.

The acquisition adds significantly to Torc's scale as the enlarged company will employ more than 200 people in five countries and will have combined revenues of more than £35 million per annum.

Mr Roden, who will move to London to head the new group, said the synergies between the two companies were very strong. He also said the deal marked the first stage in the group's European acquisition strategy.

Torc, which was established in 1997, currently employs 40 people and operates in the Republic, France and Spain.