BigAir Group Limited (BGL) is pleased to announce that on 29 June 2012 it entered into a share sale agreement to acquire all of the shares in fixed wireless network operator Link Innovations Pty Ltd. The acquisition of Link is consistent with the companies acquisition strategy since it operates a high speed fixed wireless network with a high quality corporate customer base. Link has a complementary wireless network that extends the reach of the BigAir footprint in several key markets. This acquisition further cements BigAir’s position as the leading fixed wireless operator to the business and wholesale markets across Australia. The acquisition is expected to deliver significant cost, revenue and capital expenditure synergies.
BigAir will acquire Link for total consideration of between $1.75 million and $2.75 million based on the performance of Link in FY13 and FY14. Consideration consists of Fixed payment of $0.80 million in cash payable on completion; Fixed payment of $0.25 million in BGL shares at 37 cents 1 on completion ; Fixed payment of $0.70 million in cash payable 12 months from completion; and payment of up to $0.5 million in cash payable within 30 days of the finalisation of FY2013 audited accounts based on revenue achievement with the minimum revenue hurdle of $2.4 million
Link Innovations operates its own high-speed business to business Fixed Wireless Ethernet Broadband network. The network spans throughout Sydney, Melbourne, Perth, Brisbane, Newcastle and a number of regional markets including Gosford, Coffs Harbour, and Dubbo. Link will operate as a wholly owned subsidiary within the BigAir Group, and the Managing Director of Link, Jerry Wolsztyniak, will remain with Link. BigAir owns and operates Australia’s largest metropolitan fixed wireless broadband network. The Australian business market comprises nearly one million businesses, and BigAir’s network provides near blanket coverage across its nine largest cities Sydney, Melbourne, Brisbane, Perth, Adelaide, Newcastle, Gold Coast, Sunshine Coast and Darwin, with further rollout planned in several new markets. BigAir provides broadband and data services primarily through its channel partners who include ISPs, Carriers, and other IT service companies who have existing relationships with business customers in order to deliver BigAir’s high speed, cost effective fixed wireless broadband solutions.