Over the Wire has entered into a binding agreement to purchase both Access Digital Networks and Comlinx in a deal worth nearly $30 million, to be paid in a mix of cash and shares.
The publicly-listed telecommunications services provider will pay $10.44 million in cash plus $2.61 million in shares for Adelaide-based Access Digital Networks, plus $12.8 million in cash and $3.2 million in shares for Comlinx.
Access Digital Networks and Comlinx will be given deferred consideration bonuses of $1 million and $4 million respectively depending on meeting revenue targets and customer retention.
The deal is expected to be finalised on 1 November.
Founded in 2005, Access Digital Network employs approximately 10 staff and has around 250 clients.
Specialising in providing data networks, voice and private cloud solutions and services for businesses, the company brought in revenue of $8.5 million for the last financial year.
Meanwhile, Brisbane-based Comlinx has 20 staff and around 100 customers and provides IT managed solutions to corporate and government clients.
According to an ASX announcement, the purchase provides Over the Wire’s customers with a broader product offering and additional value-added service.
“We are very excited to be able to welcome Access Digital Networks and Comlinx to the Over the Wire group,” said Mike Omeros, CEO and managing director at Over the Wire.
“Access Digital Networks and Comlinx are high-quality businesses with quality teams that will integrate well with Over the Wire. We will continue to target a plus-20 per cent year-on-year organic growth together, achieving very high levels of customer retention.”
Over the Wire holding company subsidiaries include Over the Wire, NetSIP, Faktortel, Sanity Technology, Telarus and VPN Solutions.
The holding company posted a 57 per cent revenue growth in the last financial year, a rise from $34.2 million to $53.56 million.