Spirit Telecom has ramped up its presence in NSW through the acquisition of managed IT services business Cloud Business Technology (Cloud BT).
Cloud BT was established in Sydney in 2008 and specialises in security, cloud solutions, IT consulting and outsourcing.
The $700,000 acquisition will bolster Spirit’s cloud based security managed services offering that will run over its fixed wireless network for small- and medium-sized businesses (SMBs) across Sydney and regional areas of NSW.
The deal, which will close on 1 February, is expected to add $1.3 million in annual revenue.
Additionally, Spirit has expanded its network coverage across the Sydney metro area, gaining about 2,000km of 50Mbps to 100Mbps coverage, potentially reaching a further 2.5 million people. It has also reached 33 network-ready buildings with minimum speeds of 100Mbps.
“With our expanded Sydney network launched, and the Cloud BT acquisition in Sydney, Spirit can now deliver the full range of Spirit’s IT services which means that more SMBs can access our high-speed, fixed wireless Sky Internet, cloud, security and bundled IT services and products across NSW,” Spirit managing director Sol Lukatsky said.
Cloud BT CEO, JJ Fiasson, said through its integration with Spirit, it can offer more products to the market and help more SMBs on the Spirit high speed network, benefiting both customer bases.
Spirit highlighted Cloud BT’s cloud and security services represented significant product cross-sell opportunities and further expands its IT and telecommunications customer base nationally.
Further acquisitions are on the cards, with Lukatsky saying it was continuing to pursue further complementary acquisitions in the telco and MSP space.
In the last financial year, Spirit posted a net loss after tax of $832,742, a 245 per cent drop from previous year’s half a million profit.
Despite this, the company said it plans to continue its acquisition strategy throughout the new financial year in an effort to grow its offerings and customer base.