Fixed wireless provider BigAir has made another acquisition, announcing it will acquire Sydney managed services provider Applaud IT for $1.2 million.
Applaud will continue to operate as a wholly-owned subsidiary of BigAir, with its service desk expertise being added to BigAir's offerings.
“We’ve been shopping for a possible acquisition or a merger for a while, and some of those organisations were only interested in taking our services only to dissolve the business later,” said Applaud managing director Ricci Danieletto.
“BigAir has a great strategy for mid-market sector growth, and we felt like we could contribute to that growth.”
Applaud expects to generate between $6 million and $7 million of revenue in the 2016 financial year, with earnings before interest, taxes, depreciation, and amortisation of $700,000.
For its growth, Applaud has twice appeared in the CRN Fast50 - No. 28 in 2011 and No. 50 in 2013.
The buyout also means Applaud will be able to leverage BigAir’s offerings, which includes fixed wireless, cloud and communication services.
"The acquisition of Applaud is consistent with our vision to be the number one managed technology solutions provider servicing mid-market customers,” BigAir CEO Jason Ashton said in a statement to the ASX.
The Applaud deal will be funded from BigAir's existing debt facilities, and follows a string of multimillion dollar acquisitions by BigAir in the past four years.
Last year, BigAir bought Sydney service provider Oriel for an estimated $15 million and the hosting division of Anittel Communications for $6.5 million. In 2013, BigAir acquired Intelligent IP Communications to bolster its unified communications and managed services capabilities for a reported $10 million.
BigAir also snapped up a handful of wireless broadband firms including wireless engineering company Star-Tech Communications; managed student Internet services provider AccessPlus; fixed business wireless provider Clever Communications Australia; business and student broadband provider Allegro Networks; and business wireless provider Link Innovations.
The Applaud acquisition is expected to be completed this month.