Western Australian telco, Datafast Telecommunications, is planning to add yet another ISP to its books, entering into a merger agreement with ISP KeyPoint Pty Ltd.
The deal, struck earlier this month, will incorporate cash, shares and options. A figure on the total cost of the acquisition has not been disclosed.
Datafast CEO, Simon Ehrenfeld, said Key Point had “substantial synergies” with Datafast which had made the acquisition an appealing one.
In order to go ahead, the deal with Key Point will need to secure shareholder approval at the company’s annual general meeting on December 23.
According to its ASX announcement, existing Datafast shareholders will receive a free option, exercisable at 3 cents for every 10 shares they hold, upon approval of the acquisition.
KeyPoint is an independently owned and operated Melbourne-based ISP providing dial-up, satellite and broadband Internet services nationally. The company currently boasts 25,000 home and business Internet users.
Datafast’s latest merger plan follows a string of acquisitions by the telco over the past 12 months. In October last year, the telco announced it would inject $1 million into - and acquire all shares in - Internet provider, EFTel Pty Ltd.
Datafast also acquired smaller ISPs. Impaq Australia and E Z Web. earlier this year, adding 6,000 active customers to its service.
Once the acquisition with KeyPoint is completed, Datafast would have trebled its retail customer base over the past 12 months to more than 85,000 active subscribers, Ehrenfeld said.