Spirit Technology readies raising to buy Nexgen; Shaws on ticket News29 Mar 2021

ASX-listed Spirit Technology Solutions is readying a $24 million capital raise to buy telecommunications equipment outfit Nexgen.


The company had Shaw and Partners in its corner on Monday morning helping it finalise terms on the capital raising, which would be used to help pay for the business.


Nexgen includes two businesses, one called Nexgen and the other name Business Telecom, and sells a range of data, security and voice products, like phone systems and conferencing units.


The company was forecast to generate between $7.2 million and $7.6 million earnings before interest, tax, depreciation and amortisation in fiscal 2021, and the purchase price implied a 6.5 times earnings multiple.

 

It is understood the purchase would double Spirit’s customer base to more than 10,500 small and medium enterprises.


Spirit would fund the deals using a mix of 70 per cent cash – thanks to capital raising and debt facility from CBA – and 30 per cent scrip, which would come with a vendor performance earn-out.
Spirit’s shares went into a trading halt on Monday morning.

 

Article source: AFR, 29 March 2021

 

About Spirit Telecom

Spirit Telecom Limited is a modern telecommunications provider of superfast Internet access and telephony  services that listed on ASX 26 June 2016. A fast-growing niche Telecommunications Carriage Service Provider, Spirit is focused on supplying fibre based broadband services to multi-dwelling user locations including residential, business, student accommodation, community housing and business parks. Spirit was voted as being Australia’s fastest Internet Service Provider (ISP) for 2015 by PCMag.com. With 10-year  brand awareness, Spirit prides itself on delivering real service to its Australian residential and commercial  customers and provides customers with the highest quality product. Spirit has a history of successfully acquiring and integrating complimentary companies, including Voxcom  (2012), My Telecom (2015), Phone Name Marketing (2016) and World Without Wires (2017)

 

 

Related Articles
News07 Apr 2021 The world is East 33’s oyster in its plans to float
Sydney-based oyster farming operation East 33 is understood to be moving forward with plans for its initial public offering, with advisory firm Shaw and Partners believed to be fir... Read More
News01 Apr 2021 Brumbies captain Allan Alaalatoa and prop Scott Sio visit Shaw and Partners headquarters in Sydney
Shaw and Partners is a proud sponsor of the Brumbies Rugby and yesterday we had the privilege of hosting captain Allan Alaalatoa and prop Scott Sio in our Sydney headquarters. All... Read More
News31 Mar 2021 $310m-a-year Silk Contract Logistics taps two brokers for IPO
As private equity types ready final bids for Toll Global Express, there’s a different local logistics outfit keeping funds managers busy. Street Talk understands Victorian-headqu... Read More
News30 Mar 2021 Shaw and Partners appointed as Co-Manager to a capital raising by Openpay
Shaw and Partners is pleased to be appointed as Co-Manager to a proposed placement by Openpay Group Limited (ASX.OPY)   Openpay is seeking to raise up to $32.3 million by way of ... Read More
A - Z  % Change  
{{data.Symbol}} {{data.CompanyName}} {{data.Close}} {{data.AsAt | date :'shortTime'}} {{data.Movement | number : 2}} {{data.MovementPercent | number: 2}}%