Regional telco and cloud solutions provider, Field Solutions Group (ASX:FSG), is looking to raise just over $1.1 million to acquire the assets of South Western Wireless, which went into administration in early March.
As reported by ARN on 20 March, regional and remote high speed internet provider, South Western Wireless Communications Company (SWWCC) and an associated telecommunications hardware firm, Tups Company, had been placed into voluntary administration.
With offices in Sydney, Rockhampton and Emerald, South Western Wireless has made a name for itself building portable modular data centres that are used for wireless internet services in regional and remote communities.
In recent years, the South Western Wireless developed a product based on a containerised data and communications hub complete with telecoms tower, used for hub-and-spoke wireless communications services for regional and rural areas.
On 21 March, the publicly-listed Field Solutions Holdings told shareholders that it would undertake a new share placement to raise $1.12 million in new funds with which to purchase the assets of South Western Wireless.
Under the agreement, customers and assets of South Western Wireless will be acquired. Furthermore, the acquired business is expected to contribute revenues in excess of $1.8 million in FY19 after synergies, Field Solutions Group said.
“This is an exciting stage in the growth of FSG, we have expanded our network and customer footprint into three states,” Field Solutions Group CEO, Andrew Roberts, said.
“Servicing the broadband needs of rural, regional and remote Australia is our focus, and with the combined assets we have the ability to grow our network concurrently around Australia.”
South Western Wireless operates in regional areas in NSW, Junee, Temora, Harden and Galong, and in Queensland out of Rockhampton across to Longreach, Emerald, Barcaldine, Winton, Yamala and down to the NSW border.
Field Solutions Group said the new acquisition complements its existing networks in NSW, including Gundagai, Moree, Goondawindi and Narrabri.
Field Solutions Group said it plans to retain key staff and use the existing Rockhampton operations centre as its Queensland headquarters.
Field Solutions provides private cloud hosting services and generic cloud hosting services, drawing upon its own nationwide IP network, and counts Microsoft, Oracle and VMware among its partners.
Under the terms of the agreement, the assets of the telco were 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.
Registered in NSW, ANT provided fixed line and satellite communication services, predominantly in rural and regional Australia.
Late last year, Field Solutions Group posted a $994,588 net loss after tax (NPAT) for the financial year ending June 2017, following a public listing and a quick succession of acquisitions.