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