5G Networks completes telco takeover following capital raising round

5G Networks completes telco takeover following capital raising round

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.

APTel was valued at $6 million in the deal, a figure equal to its current revenue across the Group's Victorian properties and businesses.

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

Former ABC MD Michelle Guthrie to chair travel tech software group TRAVLR

Former ABC MD Michelle Guthrie to chair travel tech software group TRAVLR

After raising $6.7 million and striking a deal with BBC Global News...

Vinomofo buys food and wine events company Revel

Vinomofo buys food and wine events company Revel

Online wine retailer Vinomofo has this week acquired Melbourne-base...

Mr Yum loads up with $89 million Series A backed by Tiger Global, Ruslan Kogan and more

Mr Yum loads up with $89 million Series A backed by Tiger Global, Ruslan Kogan and more

Melbourne-based QR code menu platform Mr Yum has today announc...

Seven West buys stake in fintech Raiz for $10 million

Seven West buys stake in fintech Raiz for $10 million

Australian media giant Seven West Media (ASX: SWM) will take a stra...