Spirit Telecom (ASX: ST1), internet service provider and popular alternative to the NBN, has acquired LinkOne Group for $5.7 million.
LinkOne is a telecom carrier across hardware platforms including fibre, copper and broadband which has a significant footprint in Melbourne, Sydney and Brisbane.
Spirit's aim is to give more east coast businesses access to high speed internet and managing director Geoff Neate says the acquisition of LinkOne will bring the company closer to its goal, particularly in the Brisbane and Sydney markets.
"The acquisition of LinkOne brings to Spirit an instant accretive expansion into Brisbane and Sydney and is geographically complementary in Melbourne," says Neate.
"This is an exciting acquisition that has been over six months in the making and brings a growing business, managed by a smart team, into Spirit's stable."
The buyout is comprised of $4 million cash plus $1.7 million in scrip and marks Spirit's third network expansion.
To support the acquisition, Spirit has received commitments for a capital raising stint of $4.2 million at $0.12 per share.
Spirit will also offer all existing shareholders the chance to subscribe for up to $15,000 new shares under a share purchase plan which will be capped at $1 million.
LinkOne CEO Todd Maunder will be joining the Spirit leadership team and says it's an opportunity to "take LinkOne to a new level".
"The synergies between our respective networks enable an immediate upside for our partners I am extremely proud of what the LinkOne team has achieved and we look forward to joining Spirit's dynamic team."Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
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