Fresh off its $18.2-million capital raise, 5G Networks has acquired colocation and networking services provider ColoAu.
As part of the deal, the Melbourne-based company will hand over $2.9 million in cash and $500,000 of its own shares to ColoAU, provided certain conditions are met for the latter.
Based in Brisbane, ColoAU operates a 100Gb WDM network which connects Australian capital cities to data centres in Los Angeles, Dallas, Singapore, Tokyo and New Zealand.
It also sells and supports data racks in data centres owned by Equinix and NextDC, making $4.2 million in normalised annual revenue and $700,000 in EBITDA.
5GN now plans to allow partner access to ColoAU’s automated network platform, which will be integrated with its own Cloud Federation and data centres.
“ColoAU allows us to fast track a number of growth strategies we have identified including the ability to employ system automation to augment the customer fulfilment process and accelerate the speed of service delivery,” 5G Networks MD Joe Demase said.
“We believe our channel partner program will be further enhanced by offering alternative on-demand connectivity solutions which will seamlessly connect to over 67 leading data centres once our fibre network rollout is complete.”
It has also sought to increase its rack space with acquisitions of Melbourne Data Centre (MDC) and Sydney’s Australian Pacific Data Centres (APDC).
As part of its recently announced funding, the company now plans to make both further acquisitions and extend its fibre network into Brisbane and Adelaide, with the former aided by its purchase of ColoAu.