BigAir acquires Star-Tech Communications division

$550,000 investment expected to pay itself off within the first year

ASX-listed ISP, BigAir (ASX:BLG) has acquired the assets and customer base of the wholesale broadband division of Star-Tech Communications for $550,000.

The acquisition will be funded by issuing BigAir shares.

$300,000 of shares will be issued on signing the agreement. The balance in annual share payments over the next two years will be based on the performance of the business. Expected on-target total share issuance is $550,000.

The acquired division is expected to generate more than $1 million in annual revenue and is also set to be earnings per share accretive within the first year of the acquisition.

In a statement, BigAir CEO, Jason Ashton, said the acquisition would further consolidate the company’s position as the leading wholesale fixed wireless network operator in Australia.

“The acquisition of Star-Tech’s assets and customers will bring additional revenue and a valuable leadership position in the rapidly growing tertiary halls of residence sector,” Ashton said in the statement.

BigAir claims it has experienced organic fixed wireless revenue growth of 40 per cent on the previous corresponding period in the first half of FY10

Sponsored Content: Collaboration has become the new movement in IT. Servers will become an integral part of this industry transition. Click here to learn more.

Join the ARN newsletter!

Error: Please check your email address.

Tags bigairStar-Tech Communications

More about BigAir GroupetworkLG

ARN Directory | Distributors relevant to this article

 

Latest News

09:58AM
Marriott CIO: FCC message on WiFi blocking loud and clear
03:23AM
Microsoft to business: Don't worry about Windows 10, consumers will test it
Jan 31
Outlook app for Android and iOS boosts Microsoft's mobile comeback
Jan 31
MIT randomizes tasks to speed massive multicore processors
More News
23 Feb
Live Streaming Technology
05 May
CeBIT Australia 2015
27 May
World Business Forum Sydney
View all events