BigAir buys Allegro Networks

May 23, 2012 11:51 PM
Filed under Communications

Further consolidation in fixed wireless sector.

BigAir has snapped up Queensland fixed wireless network operator Allegro Networks for up to $10.5 million.

Allegro provides business-grade symmetric broadband services to the corporate market and also services the tertiary student accommodation market.

Under the terms of the buyout, Allegro will operate as a wholly-owned subsidiary of BigAir. Allegro's managing director, David Waldie, remains on board.

BigAir will pay $3.75 million in cash from its reserves and offer Allegro an equal value of BigAir shares.

There is also a potential earn out, capped at $3 million, should Allegro hit certain revenue targets in its first year under BigAir.

Allegro is expected to be earnings positive for BigAir in its first year.

"In combining Allegro's retail corporate customers, service offering and spectrum assets with BigAir's national network coverage and access to capital, the customers of both organisations will benefit from the expanded service offering and network coverage, and the combined engineering and commercial strengths of the two organisations," BigAir chairman Paul Tyler said in a financial filing.

 
Follow us on Facebook and Twitter
 

Copyright © iTnews.com.au . All rights reserved.

BigAir buys Allegro Networks
 
 
 
 
 
Top Stories
How a devastating cyber attack turned Melbourne victim into evangelist
Back from despair after Distribute IT lost 4,800 websites.
 
Aldi to sell $279 dual SIM smartphone
Supermarket ups mobile ante with new plans and phone.
 
EMC takes custody of VCE as Cisco marriage falters
What will it mean for future of Vblock?
 
Sign up to receive CRN email bulletins
   FOLLOW US...
Polls
Is Microsoft right to limit the reseller channel for Surface?

Latest Comments
CRN Magazine

Issue: 331 | September 2014

CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.