BigAir Group Limited (BGL) is pleased to announce that is has entered into a binding agreement to acquire all of the shares in Allegro Networks Pty Ltd and RadioCorp Pty Ltd. The parties will now conclude the sale and purchase agreements on or before 31 May 2012.
Commenting on the acquisition of Allegro, BigAir Chairman, Paul Tyler, said: “The acquisition of Allegro is highly strategic and synergistic. It cements BigAir’s position as the leading operator in our two core markets – the emerging corporate fixed wireless market, and the tertiary student accommodation Internet market. The acquisition is expected to deliver significant cost, revenue and capital expenditure synergies. “In combining Allegro’s retail corporate customers, service offering and spectrum assets with BigAir’s national network coverage and access to capital, the customers of both organisations will benefit from the expanded service offering and network coverage, and the combined engineering and commercial strengths of the two organisations.
BigAir will acquire Allegro for $7.5 million plus a FY2013 revenue based earn out of up to $3.0 million comprising: $3.75 million in cash payable on the date of completion; $3.75 million in BigAir shares to be issued at 36.8 cents; Capped revenue earn-out of up to $3 million payable within 30 days of the release of Allegro’s FY2013 audited accounts.
Allegro is a Queensland based Telecommunications carrier founded in 2005 that has its own high speed fixed wireless network providing blanket coverage over South East Queensland – extending from the Gold Coast through Brisbane and the Sunshine Coast and the growth corridors in between. Allegro is also extending its fixed wireless network into the key regional growth markets of Gladstone and Mackay. Allegro is an established supplier in the tertiary student accommodation Internet market, currently servicing more than 60 sites that contain approx. 8,000 student beds. Once this division is combined with BigAir’s, the total number of student beds serviced by BigAir will be almost 27,000 across 124 sites. BigAir owns and operates Australia’s largest metropolitan fixed wireless broadband network. BigAir is also the leading provider of outsourced managed Internet services in the tertiary student accommodation market within Australia, with network infrastructure at more than 50 sites across Australia.