ASX-listed wireless provider Tomizone acquires NZ's Ironman Group

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ASX-listed wireless provider Tomizone acquires NZ's Ironman Group

Tomizone, a wi-fi provider with offices in Auckland and Melbourne, has acquired Auckland-based Ironman Group – and is hunting Australian targets.

ASX-listed Tomizone, which turned over A$2.2 million in revenue in 2017 and has a market capitalisation of $5.9 million, will add 4000 new customers across New Zealand with the deal, and will combine its wi-fi services to Ironman’s subscription model.

The purchase price is 9.2 million shares, currently worth $220,000, and a five-year earnout of NZ$600,000.

“Ironman is a highly complementary business that clearly fulfills our strategic criteria for acquisitions that deliver aligned products and services, new distribution channels, an increase in our customer base, and stable recurring revenue streams,” Tomizone chairman Ian Bailey said.

Ironman delivers hardware, software and wi-fi services to its customers in a single monthly subscription, particularly for services such as telecommunications, point-of-sales systems, web design and others.

Its customer base includes large stadiums, medical centres, sports clubs and hospitality businesses, all of which Tomizone believes will benefit from its wi-fi managed services.

“We are currently in the process of implementing additional steps to advance our strategy and look forward to providing further details on how such transactions will deliver further value for our shareholders,” Bailey said.

“It is expected that the enlarged business will be able to reduce overall operating costs by synergies in infrastructure and operation cost reductions over the next three to six months.”

Tomizone on 7 September acquired Auckland-based online services provider Bluesky Online Services in a deal valued at around $300,000, comprising $142,500 in cash and 6.67 million shares.

Both acquisitions were finalised on 9 October, and are expected to generate positive earnings for the first half of 2018.

Bailey said Tomizone would "continue to to identify suitable additional acquisitions, particularly in the Australian market where we believe it is important to expand operations".

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