Destra Corporation has sold off its communications division for $6.25 million to IP network provider, IntraPower. The acquisition is subject to various conditions including IntraPower listing on the ASX. It expects to list on July 5. Destra CEO, Domenic Carosa, said the company had spent the past 18 months refocusing attention on its digital media business.
"Our new focus in media is really going back to the core of the business. We have now completed that process and gone from a pure play hosting communications company to a pure play media company," he said. "We did a very similar thing with our hosting division, which we sold into the BlueFreeway float. They listed in December and we received $19 million for that asset."
Destra's communications team is made up of about 30 staff. All will be kept on-board. Carosa could not disclose how much the division contributed to its overall business but said it did roughly $5 million in revenue in the lead-up to the December half.
IntraPower chief executive, Greg Kennish, said the destra business would give it coverage in NSW and Victoria. The company also recently acquired Brisbane-based managed data solutions outfit, Mercury Connect.
IntraPower provides VoIP, Internet connectivity, managed data and private network services.
"We were on the acquisitions path looking for assets that we can build into our very clear strategy of being Australia's largest independent network provider," Kennish said.
"We have a new business model that we have been rolling out, which is based around having a carrier diverse network."
IntraPower will now manage 900 Destra clients. Mercury Connect added an extra 350 clients.
"Mercury is pretty successful with SMEs and is rolling out a software-as a-service product, which has been a key attraction to that business," he said.
IntraPower would continue to pursue companies within the IP sector, Kennish said.
"We're fairly aggressive and have a really big appetite for acquisitions," he said.