- Spirit Technology Solutions (ST1) has finalised its acquisition of Australian telecom business Nexgen
- The new business is tipped to bring in $36 million in combined revenue for Spirit via the onboarding of 5000 new clients
- The buy will also bring in 100 new salespeople for the company, who are set to commence selling Nexgen and Spirit's products and technologies imminently
- Spirit first tabled the buy in late March, announcing a $23 million capital raise to partly fund the acquisition
- Spirit Technology Solutions closed the day in the grey, last trading at 37 cents per share.
Spirit Technology Solutions (ST1) has finalised its acquisition of Australian telecom business Nexgen.
Onboarding the new business is set to bring in an additional 5000 new clients for Sprit as well as 100 new sales people in a bid to fuel organic growth. It's also tipped to bring in some $36 million in combined revenue, with 80 per cent of this classed as recurring.
The new sales team is expected to join Spirit imminently to sell the existing Nexgen products and cross sell Spirit’s internet, cloud, voice, mobiles and cyber security.
Spirit first announced its plans to acquire Nexgen in late March.
The telecom business sells a range of data, security and voice products including business internet plans, vendor-independent mobile plans and communication software.
To fund the buy, Spirit undertook a $23 million placement and a Commonwealth Bank debt facility in with the remaining consideration comprising of approximately 72,161,000 company shares.
Spirit says Nexgen is tracking to a forecast FY21 earnings before interest, taxes, depreciation and amortization in the range of $7.2 million to $7.6 million.
Spirit Technology Solutions closed the day in the grey, last trading at 37 cents per share.