Quadtel to acquire Intellink

Quadtel to acquire Intellink

Quadtel will add a services arm to its IT and broadband distribution business, announcing plans to acquire voice and data company Intellink.

The move is aimed at providing ongoing revenues for the distributor, as well securing a foothold in the small and medium enterprise market.

Intellink will turn over more than $5 million next financial year and has a number of broadband microwave maintenance agreements in the government and enterprise sectors.

The purchase highlights the convergence of the voice and data markets. Quadtel CEO Rodney Orrock said the acquisition would help broaden the company's distribution channel by providing cross-selling opportunities with Quadtel's own distribution business.

"Going forward, Quadtel are always looking for alternative sales channels outside of the traditional areas," he said in a statement to the Australian Stock Exchange. "Quadtel believe that Intellink will provide the infrastructure and immediate opportunities to ensure we are driving our products to their maximum potential. Intellink will deliver a ready-made SME channel which Quadtel will further expand over the coming years."

The buyout, which is subject to due diligence and warranty completion, will initially be funded from 11.25 million shares at four cents through London Partners.

Quadtel will begin offering Quality Endorsed technical support to Intellink's customers.

Intellink general manager Simon Hokin said he was looking forward to life as part of the Quadtel group, particularly in light of its strong retail relationships.

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