ASX-listed ISP, BigAir, has acquired wholesale fixed wireless rival, Wizz Communications, for $1.4 million in cash and shares.
According to a statement, Wizz will give BigAir new network base stations in Sydney, Melbourne and Brisbane. The wholesaler is expected to add $1m in annualised revenues and $500,000 in pre-tax earnings to BigAir’s bottom line over the next year.
In the statement, BigAir CEO, Jason Ashton, said Wizz would solidify his company’s position as the leading fixed wireless network provider in Australia. Integration should take less than three months and will be supported by BigAir’s existing resources.
“This acquisition will help drive strong organic growth in our fixed wireless business,” he stated. “The additional network capacity and strategic partnerships delivered by this acquisition will help us continue to grow our wireless business aggressively.”
Ashton told ARN Wizz’s founders, David Jones and Andrew Maclaren, were not expected to stay on once the transition was complete. However, its senior engineers would be a great addition to the team and provide the extra hands needed for its network expansion, he said.
Wizz Communications was established in 2004 to provide Ethernet connectivity and claims to have 15,000km2 of network reach. According to Ashton, its key customers/partners include telcos, ISPs and managed services providers such as NextGen Networks, Intrapower and Brennan IT.
“It’s a really good fit, as we do a bit of work with these guys as well,” he said. “It will make the integration process seamless and fits our model of becoming a wholesale operator working with ISPs and our reseller partners.”
Although BigAir still has some legacy direct customers, Ashton said 90 per cent of all new business was wholesale and growing every day.
The acquisition comes just one week after ASX-listed ISP, iiNet, announced its purchase of rival, Netspace, for $40m. At the time, industry analysts and veterans claimed the deal was just the start of broader consolidation across the ISP market.