Spirit Technology Solutions has sold its fixed wireless infrastructure assets for $21 million to Melbourne-based wireless telco operator Maret Group.
Maret will acquire the infrastructure assets but Spirit will retain the business customer relationships and revenues and cross-sell opportunities across its broader product portfolio
to this customer base. Maret will also charge Spirit wholesale services fees for connected services under a wholesale services agreement.
The two companies will also work together to develop and market new fixed wireless products using Maret’s spectrum assets, expanded network and Spirit’s national sales force.
“The acquisition of Spirit’s best-of-breed fixed wireless infrastructure expands our network reach substantially. The combination of our existing wireless networks, the acquired network, and our licensed spectrum creates an enormous opportunity for us in partnership with Spirit to offer superior quality and high-speed data services across a broad geography,” Maret chief executive Paul Torrisi said.
“We look forward to working with Spirit and welcoming the incoming team members to Maret Group.”
The acquisition price comprises a $15 million upfront payment to Spirit and up to $6 million in earn-out payments over two years, subject to revenue targets being achieved.
Spirit said it expects the acquisition will be completed in early June on satisfaction of customary conditions and requirements.
Spirit managing director Sol Lukatsky said, “This is a highly important transaction for the company and we are able to retain end-to-end service ownership of the business customers in addition to accessing an exciting new range of advanced fixed wireless products using Maret Group’s spectrum assets. In addition, this transaction returns a material amount of capital for a company of our size.”
“Combined with the divestment of the consumer business last October, the proceeds of this sale, (once completed), will have returned over $20 million in cash to our balance sheet in FY22. Spirit is also undertaking an internal transformation project (Spirit 2.0) to reduce costs and ensure it is well positioned to capitalise on the growth we are seeing for our services in the SMB market and cyber solutions.”