ASX-listed telco and IT services company Spirit Telecom has acquired Gold Coast-based VPD Group for $14 million.
VPD Group is a group of IT service providers based in Queensland, offering cloud, security, voice and data services. The group comprises Now IT Solutions, Live Call and Voice Print and Data Australia.
The acquisition expands Spirit further into the Queensland and New South Wales markets, and also establishes a new wholesale business for cloud, internet and voice services called Spirit Partners.
Spirit Partners will focus on distributing its range of products via channel partners across Australia, delivering cloud-based IT and internet services through the Spirit X sales platform.
In an ASX announcement released today, Spirit called the acquisition its largest and most transformational transaction completed.
“This is a game changer for Spirit and through the acquisition of VPD Group, Spirit will build and strengthen its cloud, security, data and managed IT services capabilities whilst providing entry into expanded geographies in Queensland and NSW for verticals such as mining, industrials and aged care,” Spirit managing director Sol Lukatsky said.
Also joining Spirit’s leadership team are VPD Group directors Jason Wade and Luke Briggs, joining as chief technology officer and chief sales officer, respectively.
Wade said in the announcement, “It’s a really exciting time to be joining Spirit for Luke and myself and for our staff, customers and channel partners. The two businesses are highly complementary, and by bringing our products into the Spirit X sales platform we will be a serious threat to the large telco providers.”
“From the minute we met Sol and his team it was obvious that there were material synergies and growth we could generate together. VPD’s customers and national network of highly engaged channel partners will be able to leverage the wider offering available through access to the Spirit Group's market-leading product offering. Our joint strategy of bundling products for SMEs in the Spirit X Digital sales platform is sure to make the larger telco players wake up and listen.
“We look forward to shaking things up in telco & IT across Australia and providing the services that Australian SMEs deserve.”
Spirit expects the transaction will be completed in July and is subject to normal closing conditions.