BigAir to Acquire Anittel Communications for $6.5M

Australian wireless broadband network provider BigAir Group Limited plans to acquire Anittel Communications Pty Ltd (ACPL) from Anittel Group Limited, an MSPmentor 501 company, for $6.5 million in cash.

Both companies said the acquisition will enable ACPL to operate as a wholly-owned subsidiary within the BigAir Group. Anittel will continue to operate its IT services and hosted collaboration services businesses, but will enter into a reseller arrangement with BigAir for its communication services.

BigAir CEO Jason Ashton said in a statement that the acquisition will “both broaden and strengthen its communications service offerings in the corporate market.

“The strength of BigAir’s balance sheet and cashflows has allowed BigAir to fully debt fund this acquisition,” he said. “Given the substantial network overlap there are opportunities to generate network synergies, with the acquisition immediately earnings per share accretive for BigAir shareholders.”

Initial revenue contribution from ACPL is expected to be in the range of $11 million to $12 million annually, BigAir said, adding that the integration of company infrastructures “over the first two to three years is expected to deliver cost synergies, with APCL expected to contribute more than $2 million in annualized EBITDA.”

Both companies expect the acquisition to be completed on or before January 31.