Fixed wireless broadband operator, BigAir, has purchased Perth-based telco carrier, Intelligent IP Communications (IIPC) for about $20 million.
BigAir will put an upfront consideration of $10 million with a further $10 million to be paid based on the performance of IIPC in 2014 and 2015 financial year.
A fixed payment of $6.5 million in cash will be payable once the acquisition is completed at the end of the month.
BigAir chairman, Paul Tyler, said it was the largest and most significant acquisition it has undertaken since it embarked on its merger and acquisition strategy three years ago.
Tyler said IIPC brings a new dimension to BigAir with its unified communications platform and managed services capabilities.
“BigAir believes these services are highly complementary with its existing network service offerings and customer assets, this acquisition provides us with a strategic entry into these markets,” he said.
IIPC has more than 500 customers, and it will also give BigAir a strategic foothold within the remote mining market.
IIPC co-founders, Doug Childress and Jonathan Matthews, will remain with IIPC on two year employment agreements.
During 2013 financial year, IIPC generated revenues of about $9.2 million and EBITDA of $1.4 million, and is expecting revenue between $9-$11 million in 2014 financial year. IIPC is expected to contribute more than $3 million in annualised EBITDA.