ASX-listed Spirit Telecom has continued its acquisition spree with three new additions in its managed services business.
The IT and telco services provider has announced its acquisition of Sydney-based cloud and infrastructure specialist Beachhead Group, Sydney-based commercial and industrial MSP Altitude IT and Dubbo, NSW-based IT services provider Reliance IT.
The acquisition was valued at $10.4 million, funded from a recently completed capital raising where Spirit collected $18.2 million via placement. The rest of the funds would be invested in developing Spirit’s cloud product range.
The three companies would be merged and rebranded as Spirit Solutions Partners, Spirit’s new wholesale division. Spirit said the companies are “highly complementary” to its IT services business, providing managed services, voice, security and cloud-based solutions.
Spirit Telecom managing director Sol Lukatsky said, “These acquisitions are consistent with our strategy to bring in right-fit, right price, high-margin IT and telco services businesses.”
“Additionally, these transactions give us a much deeper presence in Sydney and Central NSW immediately.”
Spirit also revealed that Commonwealth Bank has extended the company an additional $5 million debt facility, raising its debt facility limit to $15.9 million.
“The new funds raised will allow Spirit to accelerate growth, organically and via further acquisitions. We can now take advantage of national media buys across major advertising networks, online digital platforms at a time when media prices are at historical lows,” Lukatsky said.
“Furthermore, we push aggressively with the rollout of Spirit Solution Partners, our wholesale network. We have recently signed 21 new partners, and now with these transactions and new funding lines our sales network expands at pace nationally. An expanded dealer network combined with our digital sales platform, Spirit X – a proven lead generator– will be a powerful engine to disrupt the major Telco & IT companies across Australia.”