Wireless telecommunications company BigAir is set to acquire Star-Tech communications for $1.2 million.
Big Air has entered in to a share sale agreement to acquire all of the shares in Unistar Enterprises Pty Ltd, trading as Star-Tech communications, a telco and wireless engineering services company.
The deal, which will see BigAir acquire Star-Tech for an all share consideration of $1.2 million (1,263,158 BigAir shares), is expected to be completed on April 30.
BigAir previously bought the managed ISP division of Star-Tech in 2010, which marked its entrance into the student accommodation market.
BigAir chief executive, Jason Ashton, said Star-Tech was founded in 1990 as a telecommunications and wireless engineering company.
"We expect Star-Tech to provide a significant boost to BigAir's high-speed fixed-wireless infrastructure construction and maintenance capability, as well as adding capability to our community broadband Wi-Fi and enterprise 'Wi-Fi-as-a-service' capabilities."
Star-Tech generated revenues of $2.1 million and EBITDA of $39,000 in 2013.
Revenue is expected to be in the range of $2-2.3 million in 2014 and is expected to contribute more than $450,000 in annualised EBITDA to the group once cost synergies are realised, according to a company statement.
"Revenue and earnings generated from the Star-Tech customer base are expected to improve further in subsequent years through the bundling of additional services and through the additional coverage provided by the BigAir network," the statement said.