Cloud solutions and ICT service provider, Data#3 (ASX: DTL), has increased its investment into Wi-Fi analytics company, Discovery Technology. It has acquired a further 14.2 per cent shareholding in the company, for $0.5 million.
The investment is based on the same terms as the acquisition of its initial shareholding of 42.5 per cent. Data#3 also retains a further option to acquire the balance of the shares in the company at market price by June 30, 2017.
Data#3 CEO, Laurence Baynham, said the company decided to increase its investment into Discovery Technology as the growth of the consumer and enterprise Wi-Fi markets is continually increasing.
“The Wi-Fi sector remains very active with opportunities that have been in the pipeline for some time now coming to fruition. We are pleased with how Discovery Technology has progressed over the last year and firmly believe that exercising the option is in the best interests of Data#3’s shareholders,” he said.
Discovery Technology most recently developed a suite of Wi-Fi analytics software applications that provide customer analytics, location and communication solutions to Wi-Fi network owners.
Data#3 chairman, Richard Anderson, mentioned the company intends to fund the additional investment from cashflow without impacting shareholder dividends.
“In view of the further investment, Data#3 will be increasing its involvement in the management of Discovery Technology. John Grant will continue as chairman of Discovery Technology to guide what we see clearly as a very exciting and substantial opportunity over time for us,” he added.