ASX-listed Sirius Telecommunications has swooped on the remaining assets of Nomad Telecommunications after the defunct telco entered into voluntary administration in January.
Sirius picked up Nomad's facilities management business for $3.45 million in the fire sale conducted by receivers Deliotte Touche in an attempt to make good on Nomad's $9 million-plus debts to creditors.
Sirius expects the assets will triple its revenues to exceed $25 million by 2002, with the purchase of hardware, software, infrastructure, contracts, equipment leases and around 200 staff, Sirius managing director Roger Mason told ARN.
Nomad also resold mobile phones and access through Vodafone's carrier business. This did not form part of the sale Sirius said in a statement released to the ASX today.
It is not the first time Sirius has pounced on struggling companies and Mason attributes a large part of the telco's growth and subsequent listing in December 2000 to this strategy.
"We think it is terrific value," said a satisfied Mason. "It was very fortuitous for us because we had the float funds [around $5 million] sitting there waiting for an acquisition."
The acquisition of Nomad's assets and contracts, including a lucrative multi-year deal with BHP and another with Hamilton Island, provide Sirius with extensive geographic coverage into Queensland, Western Australia and South Australia, not to mention cross sell opportunities claimed Mason.
Initially Sirius expects to draw four revenue sources from Nomad's facilities management business: the design, sale and installation fees associated with new accounts; ongoing lease payments for the equipment; operations charges and technical help-desk charges.
Nomad's facilities management business (Nomad Solutions) was largely formed through the acquisition of integration company FTA Technologies in 1999. Mason claims the integration unit will continue to run as a separate division until plans for its integration into Sirius are finalised.