United Networks has announced it has entered into an agreement to acquire Broadland Group, which owns Broadland Solutions and Broadland Victoria.
The Woolloomooloo-headquartered telecommunications provider plans to offer 266,544,433 shares for the deal, with final say relegated to United Networks shareholders at its AGM on 21 October.
In its preliminary financial report, the company revealed a net loss of $1.1 million, even though revenues were up by 12.8 per cent to $3 million.
The acquisition is expected to increase revenue and profitability of United Networks, boost the combined business’ pro forma revenue to $17.6 million and be EBITDA positive.
Most of United Networks’ existing board and all of its senior executives are expected to remain and Broadland managing director Victor Tsaccounis will be named CEO post-acquisition, while Nick Ghattas, current CEO of United Networks, will be appointed the chief operating officer.
Anthony Ghattas, chairman of United Networks, said he welcomes the opportunity to bring Broadland’s executive team on board.
“They are a proven and experienced team that has created a strong and reliable business and market-leading sales force,” Anthony Ghattas said.
“Post-merger the United Networks executive team will have over 100 years combined experience, including having held senior roles as directors or head of departments at both Optus and Vodafone Hutchison Australia.”
Tsaccounis added he believes the acquisition would provide instant synergy and revenue growth opportunities for the company.
Broadland Solutions was founded in 2002 and currently operates as both an Optus reseller, as an authorised Optus business centre partner in NSW and Victoria, and as a telco under the Vokal brand.