Adelaide-based Uniti Wireless plans to acquire Spirit Telecom
- 29 March, 2019 16:19
Adelaide-based broadband specialist Uniti Wireless has confirmed plans to acquire telecommunications provider Spirit Telecom.
According to an announcement filed with the Australian Securities Exchange (ASX), where both businesses are listed, Uniti Wireless issued a non-binding "indicative offer" to acquire 100 per cent of Spirit Telecom's issued securities.
The offer was by way of scheme of arrangement, which is a court-approved agreement between a company and its shareholders or creditors.
Uniti Wireless told shareholders that no definitive agreement has been reached.
CFO and company secretary Peter Wildy told ARN that the company could not comment any further but as after a rise in shares value took place the company saw the need to advise the market of a speculation over the matter.
Wildy was unable to provide any more details on the origin of the speculations.
Earlier in the month, Uniti Wireless named industry veteran Vaughan Bowen as the executive director with primary focus on strategic expansion, working alongside CEO Michael Simmons to build up its merger and acquisition pipeline across new products and markets.
Uniti was founded in Adelaide in 2014 and provides an "alternative option to the national broadband network" (NBN).
In 2016, the business secured $1.1 million investment, which helped to accelerate its growth in Adelaide and expand into the Melbourne scene.
Since then, the company has grown to more than 50 staff and has plans to expand into Perth, Brisbane and Sydney this year. In February, it began trading on the Australian Securities Exchange, raising $13 million under its prospectus, and completed the acquisition of FuzeNet, which formed a pivotal part of its transformation.
The company's first financial results since going public are for the half year ended 31 December, with the company posting revenue of $3 million and a net loss before tax $7.2 million.
Spirit said it was going to focus on acquisitions during the second half of the financial year. Specifically, Spirit said at the time it had a shortlist of three companies with complimentary wireless network assets that were currently moving through the due diligence process.