Hostech Limited (HTC) advises that it has reached agreement to purchase Plant Communications Pty Ltd which trades as Samsung Communications Australia. Contracts are currently being prepared by the parties. On a consolidated performance basis, the combined businesses will result in Hostech achieving profitability and provide significant growth opportunities. Plant Communications has exclusive rights to distribute Samsung’s business telephony solutions in Australia. PC has a nationwide distribution channel of over 60 specialist and accredited third party dealers selling its leading range of IP PBX solutions.
The owner of Plant Communications, Mr Steve Plant comments, “this is an exciting time for Plant Communications. The acquisition by Hostech will provide the support to further grow Samsung’s offering in the Australian business telephony market. In particular, growth into areas such as IP telephony and Corporate and Government contracts will be assisted by Hostech’s current market offerings and public company structure.”
The acquisition expands Hostech’s existing assets. Sholl Communications is a leading business telephone solutions dealership and OneNetwork is a hosted business telephony solutions provider. OneNetwork will benefit from access to Samsung equipment and the potential to broaden its product offering and distribution capability. Sholl Communications will use its project management and technical expertise to offer its leading capability in areas such as Cabling and Service and Maintenance as well as Enterprise IP Telephony. Hostech is well progressed in developing additional complementary offerings to assist the Samsung Partner Channel, including the establishment of a customer finance program. Such new developments will help to further drive Samsung Communications sales via its Partner Channel whilst enabling Hostech to create new profitable lines of business. The terms of the deal have been adjusted to reflect changes in the PC balance sheet. The consideration of $3.5m is made up of $3m of Hostech shares at $0.025 (2.5 cents) per share (120 million shares) ; $500,000 cash consideration; and $250,000 paid at completion and $250,000 to be paid within 3 months of completion based on cash targets set for Partner Channel.
Tags: Hostech, HTC, New acquisition, Telecommunications
