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.
Copyright © iTnews.com.au . All rights reserved.
Issue: 329 | July 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.