Over the Wire Holdings Limited (OTW) (ASX:OTW) is pleased to announce that it has entered into binding agreements to acquire:
- all of the shares in Access Digital Networks Pty Ltd and the business assets of Interactive Gateway Australia Pty Ltd (together, “Access Digital Networks”); and
- all of the shares in Comlinx Pty Ltd (“Comlinx”)
(together, the “Acquisitions”).
Completion of the Acquisitions is expected to take place on 1 November 2018 and is subject to a limited number of customary conditions precedent.
Over the Wire has funded the Acquisitions by raising $21.5m through a placement of 5 million shares, to institutional and sophisticated investors at $4.30 per share, and existing cash. Over the Wire is also delighted to offer eligible shareholders in Australia the opportunity to participate in a Share Purchase Plan at the same price of $4.30 per share (SPP). The SPP will be capped at $5.0m with a maximum allotment of shares to the value of $15,000 per shareholder.
Commenting on the announcement, Managing Director Michael Omeros said,
“We are very excited to be able to welcome Access Digital Networks and Comlinx to the Over the Wire group. Access Digital Networks and Comlinx are high quality businesses with quality teams that will integrate well with Over the Wire.
“Access Digital Networks expedites our geographic expansion plans into South Australia whilst Comlinx introduces some complimentary new offerings via intelligent networks, contact centre / customer experience and cyber security solutions, which will be of great benefit to our existing customers.
“We will continue to target >20% year on year organic growth,
together with achieving very high levels of customer retention.”
About Access Digital Networks
Access Digital Networks is a leading South Australian based provider of business grade telecommunications services including data networks, voice and private cloud solutions and services.
Established in 2005, Access Digital Networks is headquartered in Adelaide and employs approximately 10 staff. Access Digital Networks has approximately 250 business clients with high levels of customer retention.
Access Digital Networks accelerates Over the Wire’s expansion into South Australia.
About Comlinx
Comlinx is a leading provider of IT managed solutions to Corporate, Enterprise and Government customers offering numerous cross-sell opportunities to the Over the Wire group.
Established in 2006, Comlinx is headquartered in Brisbane and employs approximately 20 staff. Comlinx has approximately 100 clients with high levels of customer retention and long tenure of relationships with major customers.
Comlinx provides Over the Wire customers with a broader product offering and accelerates Over the Wire’s move into the provision of Software Defined WAN (SD-WAN) solutions, further enhancing Over the Wire’s data network capability.