Spirit Technology Solutions is moving to divest its consumer infrastructure assets, which provide high-speed internet to thousands of residential customers, primarily in large apartment buildings across Melbourne, Brisbane and Gold Coast.
The publicly listed telco-turned-IT services provider told shareholders the divestment was in line with its shift to focus on the business market, from small- to medium-sized enterprises (SMEs) to large enterprises.
The consumer assets now account for a small amount of Spirit’s revenue compared to its business-to-business (B2B) portfolio of assets.
“As Spirit has evolved to a large integrated IT and telecommunications provider, it is in line with our strategy to divest the consumer assets, which are no longer core to our strategy,” said Sol Lukatsky, Spirit managing director.
“Proceeds from the divestment will be used to continue to acquire high growth assets across cyber security, cloud and IT services, which are in high demand within our B2B customer base,” he added.
Broadly, Spirit’s consumer network and infrastructure assets are in 97 buildings, with access to over around 18,300 possible connections, the company said.
High profile buildings such as Melbourne’s Eureka Tower, Freshwater Place, Yarra’s Edge complex, Central Equities cluster – Southbank Melbourne and Queensland’s largest residential building, Southport Central, feature Spirit’s consumer infrastructure.
Spirit has built a dedicated switched ethernet network in these buildings to deliver end-user speeds of up to 1 gigabit.
The company, which has engaged a third party to conduct a formal sales process, said the divestment will have no impact on existing customers and will see a seamless transfer to the new acquirers.
The divestment process will run through Q3-Q4 FY21.