Cloud solutions provider, Field Solutions Group, has entered an agreement, worth up to $1.5 million, to acquire Australian National Telecom (ANT).
The cloud services company, which is publicly-listed on the Australian Securities Exchange (ASX), told shareholders on 5 July that it had executed a binding heads of agreement to acquire the assets of the telco.
ANT, which is registered in NSW, provides fixed line and satellite communication services, predominantly in rural and regional Australia.
Its key customers, according to Field Solutions Group, include the Northern Territory Government, the Australian Institute of Marine Science, Cooktown Shire Council, Murweh Shire Council and the Australian Defence Force.
Under the terms of the agreement, the assets of the telco will be acquired for an initial consideration of between $1.3 million and $1.5 million, which will come in the form of cash and script over three years based on performance.
Meanwhile, the current directors of ANT will be offered full-time roles in Field Solutions Group moving forward.
The company told shareholders that it expects ANT to contribute revenue in excess of $2.4 million in the 2018 financial year after “synergies”.
“FSG’s [Field Solutions Group’s] capability to deliver services to rural and regional Australia is greatly enhanced via this acquisition”, the company’s CEO, Andrew Roberts, told shareholders.
“Being able to utilise satellite products and services through ANT augments our existing network rollout and provides a comprehensive range of options to service rural and regional Australia,” he said.
Strategically, ANT is expected to bring direct relationships with nbn, Optus and IPStar to Field Solutions Group, which the company believes it can leverage elsewhere. It also brings in over 4000 connected services in the form of residential and business customers.
The ANT deal represents Field Solutions Group’s second acquisition since listing on the ASX in May, after merging with the previously-listed Voice over IP (VoIP) player, Freshtel.
Freshtel, which had been publicly-listed on the ASX, revealed in November last year that it would merge with privately-owned cloud services player, Field Solutions Group, in a deal worth millions.
In March, Freshtel told its shareholders that it would entirely shed its legacy VoIP business in favour of the raft of IT, telco and cloud services provided by its acquisition target, Field Solutions Group.
Less than a month after its debut on the ASX, Field Solutions Holdings revealed it had made its first acquisition as a public company, reaching an agreement to acquire enterprise wireless network services provider, BMS Network Solutions.
In June, the company revealed that it had deployed its first non-National Broadband Network (NBN) fibre to the premises (FTTP) and fixed wireless solution in rural Australia.
The new entity’s latest acquisition move reinforces the company’s strategic aim to service rural and regional Australia.
“As FSG builds its own fibre network, the addition of both NBN and non-NBN satellite ensures we can cost effectively deliver our network where we are limited by backhaul options and to service more remote agribusiness and mining”, Roberts said.
The acquisition is set to complete in the next 30 days, subject to certain conditions.