- IT and telecommunications company Spirit Telecom (ST1) has completed a $9.2 million placement to fund acquisitions
- The Commonwealth Bank (CBA) has also expanded the company's debt facility to $10.9 million, extending a further $2.9 million over the past two months
- On the market today, Spirit remains steady and is selling shares for 13 cents each
IT and telecommunications company Spirit Telecom (ST1) has completed a $9.2 million placement to fund acquisitions.
The Commonwealth Bank (CBA) has also expanded the company's debt facility to $10.9 million, extending a further $2.9 million over the past two months.
The new funds will be allocated to fund new up-coming acquisitions in the MSP and Telco space.
Funds will also be used to expand Spirit X – the company’s telco digital sales platform- which generated 3200 service qualifications in its first 3 months of operation across the third quarter of 2020.
In the last twelve months, Spirit has completed seven acquisitions, which has strengthed its position as a leading provider of high-speed internet and IT services to small-medium businesses and for essential services like hospitals, schools, aged care and government departments.
“Over the past 12 months, we have transformed the company from being a fixed wireless provider to a fully integrated Telco & IT services company which provides high-speed internet, IT services, cloud, security and voice products," Managing Director Sol Lukatsky said.
"We are now a leader in bundling these products into one service and one
bill. We have been effective in cross-selling, delivering growth in recurring revenue with a sticky customer base in SMB and essential industries," he added.
This has put the company in a strong and defensive position, where 74 per cent of its revenue is contracted and recurring.
Spirit says due to the current economic environment, it has the unique opportunity to purchase profitable businesses.
"We will continue to seek out opportunities that complement our strategy in terms enabling expansion of our service offering and geographic footprint in both Telco and IT/MSP Services," Sol told the market.
On the market today, Spirit remains steady and is selling shares for 13 cents each at 10:09 am AEST.