Spirit announces acquisition of Building Connect and expands footprint in Sydney market.
One month after our LinkOne acquisition, which saw our network expand further across Brisbane, Sydney and Melbourne, we’re super proud to announce our latest acquisition of Building Connect! We’re dedicated to expanding our existing network so more Australians have access to the Internet they deserve; super-fast, Sky-Speed and soaring high above the congestion. This latest acquisition will see our Sydney footprint continue to grow, particularly western Sydney! Being Australia’s 3rd largest economic region, home to 47% of Sydney’s population, and making up 31% of Sydney’s gross regional product, it made sense for us to bring more connectivity to Western Sydney. We’ll be able to provide our Sky-Speed Internet to over 200 extra businesses across 31 of the city’s busiest buildings and business parks. Add this to our pre-existing Points of Presence (PoPs) and our LinkOne acquisition and you’ve got yourself one super-fast, super-connected Sydney network.
A quick look at the key highlights:
- Acquisition of 100% of Building Connect for Enterprise Value (EV) of $300,000
- Extends Sydney network across 31 buildings / business parks
- Immediate geographic expansion into Western Sydney
- Complimentary management skills and office to manage NSW expansion, including the recent LinkOne Sydney assets
- Strategically compelling network acquisition servicing over 200 business customers in key business parks, spread mostly in the North and North western areas of Sydney.
- Integrates sites from the LinkOne acquisition and Building Connect into one expanded Sydney network
The financial nitty-gritty – Our acquisition of Building ConnectSpirit has entered into an agreement to acquire 100% of Building Connect for consideration of:
- EV of $300,000 paid in scrip
- 70% escrowed
- Scrip price at 15 cents
- The Company will utilise its capacity under ASX Listing Rule 7.1 for the Vendor script
About Building Connect & transaction rationale
- Established in 2013, Building Connect is a wholesale licensed telecommunications carrier operating a predominantly fixed wireless network.
- Services over 200 business customers in a number of key business parks spread throughout mostly the North and North Western areas of Sydney.
- Services include 100Mbit/s + data services
- Key customer bases will be used to further expand across Western Sydney with the Spirit Sky Speed range.
- Will allow Spirit to spread its high-speed data and voice offering across business parks in Western Sydney.
- Integrates sites from LinkOne acquisition and Building Connect into one expanded Sydney network.
- Provides an office, warehouse and team based in Sydney
- The acquisition of Building Connect is earnings accretive.