Brisbane-based system integrator Data#3 (ASX: DTL) has confirmed that it will acquire a 42.5 per cent shareholding in Wi-Fi analytics company Discovery Technology for $1.5 million.
As part of the deal, Data#3 can acquire an additional 14.2 per cent share by 30 June 2015 and the remaining 43.3 per cent shares by 30 June 2017.
According to an ASX statement, Data#3 will provide $1 million in capital to fund the development of Discovery Technology, which has been providing Wi-Fi services to SME, enterprise and government clients since 1997.
In 2013, Discovery Technology launched an analytics, location and customer communication software product called the Discovery Connected Customer-xperience (CCX). CCX is deployed over Wi-Fi networks and offers customer analytics and location aware monitoring to Wi-Fi network operators. Data#3 began working with the company in mid-2013 when it started reselling CCX.
According to Data#3 managing director John Grant, the acquisition fits with two parts of its business strategy: cloud marketplace leadership and entry into the applications sector.
“We are delighted to have secured this stake in the rapidly growing Wi-Fi sector and to do it with a solution that’s built for the cloud,” he said.
Grant will be appointed to the Discovery Technology board to help guide the company's transition.
Data#3 has been on a growth cycle of late. In December 2013, it signed a multi-year IT outsourcing deal with Brisbane Airport Corporation (BAC).
At the time, the company would not disclose the total figure but said it was a “multi-million” contract.
Under the outsourcing arrangement, Data#3 provides service desk, desktop, server and infrastructure support along with network management, voice over IP and telephone services to BAC.
- Airtasker scoops up Occasional Butler, eyes New York
- DesignCrowd buys US startup Worth1000
- Canon Australia acquires Harbour IT for undisclosed sum
- Data#3 lifts revenue to $406.4M