Spirit Telecom has picked up 2200 new customers by acquiring World Without Wires for $4.6 million.
Wires owns 12,000 square kilometres of fixed wireless network and services residential, SME and corporate customers in South East Queensland and Northern New South Wales. The wireless provider generated $2.6 million in revenue last financial year, with $1 million in EBITDA and $607,000 net profit.
Along with the new customers, Wires co-founder and chief executive Damien Keogh will join Spirit as its new chief infrastructure officer.
“We have been working with Spirit, in a supplier relationship for some time now and we are confident that our two teams will come together and work as a cohesive unit," said Keogh. "We have chosen to take 32 percent as scrip, given we understand the opportunity to be part of a larger organisation.”
The combined company will have a total customer base of 7713 with 122 points of presence in Australia. Spirit said there would be potential synergies in increased buying power, network consolidation, software development and licensing costs.
“This is an exciting acquisition that has been over 12 months in the making and brings a growing business, managed by a smart team, into Spirit’s stable," Spirit chief executive Geoff Neate said.
"This will expand Spirit’s footprint significantly and generate a stronger platform of growth. Wires CEO, Dainen Keogh, will join the Spirit Executive team and will bring another level of thinking and expertise to our team.”
Spirit also announced its unaudited financial results for the 2017 financial year, which showed revenue was up 22 percent to $11.4 million. Underlying earnings for the year were $2 million, and underlying net profit was $800,000.