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Access Providers gets Activ

Access Providers (AP) has cemented a share acquisition and subscription agreement to acquire Sydney-based telco and IT services provider, Activ. The move follows the Melbourne-based wireless carrier's decision to accept a $2.85 million takeover bid from WIN Corporation for its shares in SelecTV.

Negotiations with Activ began in January this year, AP CEO, Keith Ondarchie, said, but were slowed by processes relating to AP's acquisition of Saise Telecom in September last year.

Activ is ASX-listed AP's third acquisition to date. Prior to purchasing Saise, the company also acquired ISP, Online 2000, in July 2005.

Activ would provide a platform for growth in the Sydney market, Ondarchie said, with AP providing networking expertise and Activ providing data, voice and mobile services.

"At a much larger scale, [we will be able to] offer to our customer base more complex solutions," Ondarchie said. "Activ brings a much higher level of customer and channel partnerships."

Ondarchie expressed an interest in growing the company's nationwide reseller base, but said it was currently too early to confirm how it would achieve this. Its first step would be to enhance Activ's channel model and adopt it nationally.

"They [Activ] have a different type of reseller model, where their resellers of complex engineering solutions refer to Activ to design and deliver them," he said.

AP reported a 170 per cent increase in revenue to $10.8 million in the 2006 financial year. With Activ under its wing, the company forecast in excess of $22 million in full-year 2007 sales.

The acquisition of Activ and its 19 staff brings AP's headcount to 70. While the company currently has zero debt, Ondarchie said it was looking to reorganise its finances for a more flexible balance of debt and cash.

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