After buying Enspire, Melbourne's 5G Networks acquires communications reseller APTel for $6m

By on
After buying Enspire, Melbourne's 5G Networks acquires communications reseller APTel for $6m

Publicly listed business broadband provider 5G Networks has announced plans to acquire Asia Pacific Telecommunications Group (APTel) for $6 million.

Based in Melbourne, APTel provides voice, data and cloud communications services to 815 mid-market corporate clients, hotel groups and commercial offices. Its partners include Polycom, AAPT, Yealink, Broadsoft and Telstra.

APTel was originally established as an internal business unit of integrated property developer Deague Group to provide network solutions and telco services to its properties.

The acquisition price represents four times EBITDA in the 2017 financial year, with $3 million to be paid upon completion and the other $3 million in September. 5G Networks also completed a capital raising of approximately $3.5 million by issuing 5.85 million new shares at 60 cents each to fund the acquisition.

5G Networks said APTel had an annual revenue of $6.3 million in FY17, and would see synergies of $500,000 per annum in the first six months.

As part of the deal, 5G Networks will partner with Deague to provide IT infrastructure and network access for future property developments, and will gain roof top access to all existing properties.

Commenting on the acquisition, 5G networks managing director Joe Demase said the company's immediate focus would be on integrating APTel's business and staff.

"Immediately it increases our revenue and EBITDA levels to give us scale and cashflow and access to a substantial new customer base that we can use to leverage our core offerings.

"The integration of the APTel service suite with our own offering delivers a powerful business solution that can meet the modern demands of the mid-tier business market for broadband and cloud services.

5G Networks listed on the ASX late last year, acquiring Melbourne-based managed services provider Enspire in the process. The company combines its own wireless network with fibre access marketed as an alternative to the NBN.

The company's shares were trading at 73 cents each at the time of writing.

Got a news tip for our journalists? Share it with us anonymously here.
Copyright © CRN Australia. All rights reserved.
Tags:

Most Read Articles

You must be a registered member of CRN to post a comment.
| Register

Poll

The most over-hyped technology trend of 2019 is...
Blockchain
AI
IoT
Everything-as-a-service
View poll archive

Log In

Username / Email:
Password:
  |  Forgot your password?