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MELBOURNE telco 5G Networks has acquired Asia Pacific Telecommunications Group (APTel) in a deal worth $6 million.
The deal follows a capital raising round where 5G Networks issued 5.85 million new shares at $0.60 per share to raise approximately $3.5 million.
As part of the acquisition, 5G networks has signed a further partnership with property and development company Deague Group.
Under the agreement, 5G Networks will have rooftop access to all existing and new properties across Australia to boost its wireless network rollout, while APTel will continue to provide all ongoing IT Services for Deague Group.
Managing director of 5G Networks Joe Demase says the buyout is in line with his company's IPO growth strategy and is expected to double its bottom line.
"The acquisition of APTel is a significant illustration the strategy that we outlined in our IPO prospectus," says Demase.
"Immediately it increases our revenue and EBITDA levels to give us scale and cashflow and access to a substantial new customer base that we can use to leverage our core offerings.
Demase says the company's short-term goals are largely centred on integration, which includes staff and more than 800 customers.
"Our immediate focus will be on the successful integration of the APTel business and personnel," he says.
The acquisition will be completed this month following the first payment of $3 million. The second payment of $3 million will take place in September 2018.
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