Total
0
Shares
Image sourced ShutterStock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Spirit Telecom has acquired IT solutions providers Phoenix Austec for $1.6 million
  • The acquisition expands and strengthens the company’s migration into the Managed Service Provider sector for Small-Medium Enterprises (SMEs)
  • Phoenix has been providing SMEs with managed IT support, IT security and consulting services for over 10 years
  • Spirit has also bought out three other companies in the past four months

Spirit Telecom has acquired IT solutions providers Phoenix Austec for $1.6 million.

Spirit has been on an acquisition splurge over the past four months having already acquired three other companies including LinkOne, Building Connect and most recently, Arinda IT.

This acquisition expands and strengthens the company’s migration into the Managed Service Provider (MSP) sector for Small-Medium Enterprises (SMEs).

Phoenix was established in 2007 to provide small businesses with an outsourced managed IT solution including hosted firewall, IT security and consulting and cloud-based support services.

Its clients range from small office businesses to multi-site national companies spanning the eastern coast of the country.

“We have been growing Phoenix since 2007 and have been approached by other potential acquirers,” Phoenix Managing Director Amelia Buchanan said.

“Once we understood the direction Spirit is headed and the growth opportunity that this delivers the Phoenix team, we became eager to be part of the journey,”

Spirit Managing Director Geoff Neate shed light on the story of the acquisition in today’s media release to the ASX.

“We approached Phoenix a few months ago and were impressed by its strong competency in providing managed IT and SAAS solutions to a customer base that is typical of Spirit’s target market,” he said.

Spirit is Australia’s leading alternative to the NBN. It provides exceptionally fast internet speeds through the air, ensuring over 8000 businesses and homes on Australia’s East Coast can use their internet without disruption.

It also offers a range of managed services, cloud solutions and unified communications services. The company is continuously trying to meet demands both organically and through acquisitions – which has proven successful as of late.

Acquiring Phoenix is a valuable addition to Spirit’s growing managed IT services portfolio is expected to increase the company’s earnings.

Spirit acquired Arinda earlier this month for $2.6 million. Arinda’s managed services product range already represents approximately 20 per cent of Spirit’s overall revenue.

The company’s current focus is integrating Phoenix and Arinda into a Spirit IT division.

“We were particularly impressed with the integration methodology that Spirit has created for MSP’s inside its operations,” Amelia Buchanan added in closing statements.

“We have met a lot of the Spirit team and we are already working on realising the potential that the newly formed Spirit IT will deliver,”

ST1 by the numbers
More From The Market Herald
Dubber Corporation (ASX:DUB) - CEO, Steve McGovern

" BT selects Dubber (ASX:DUB) for unified recording and intelligence

Global communications services and solutions company BT has selected Dubber Corporation (DUB) for its intelligence solution.
Beam Communications (ASX:BCC) - CEO, Michael Capocchi

" Beam Communications (ASX:BCC) raises $5m for ZOLEO

Communications equipment company Beam Communications (BCC) has successfully completed its share placement and raised $5 million.
Swoop (ASX:SWP) - Non Executive Chairman, James Spenceley

" Swoop (ASX:SWP) to acquire VoiceHub for $6m

Network services provider Swoop (SWP) is set to acquire Sydney-based wholesale voice service provider VoiceHub for $6 million.
Aussie Broadband (ASX:ABB) - Managing Director, Phillip Britt

" Aussie Broadband (ASX:ABB) confirms takeover talks with Over The Wire (ASX:OTW)

In response to an article by The Australian, Aussie Broadband (ABB) has confirmed it is in discussions with Over The Wire (OTW) regarding