Highlights
- 5GN has entered into an agreement to acquire 100% of Intergrid Pty Ltd, a leading dedicated cloud provider (Bare Metal)
- The purchase price is $3.0M, representing 4 times normalised EBITDA; payable $2.5M in cash and $0.5M in 5GN shares at a 30-day VWAP on date of issue;
- The purchase will be funded from existing cash reserves
- Annual revenue of $2.5M and normalised EBITDA is $0.8M; synergies of $0.5M p.a. expected to be realised in the first 12 months
- Intergrid operates cloud hosting services within data centres strategically located in all 10 major cities across both Australia and New Zealand
- The data centre hosting services are well supported by the Intergrid network which connects over 40 data centres to optimise speed and web content delivery by reaching 90% of the Australian population in under 20 milliseconds.
- The Intergrid cloud supports high-speed streaming to households, power Ag-Tech Internet of Things devices on farms, support critical government applications and everything in between.
5G Networks (ASX:5GN) is pleased to announce the acquisition of Intergrid
This accretive acquisition will enable 5GN to further strengthen the range of Wholesale Cloud offerings through the high-performance hosting and leveraging our significant and national and international network.
Intergrid operates a large cloud networks of dedicated servers, with extremely low latency connectivity to all major ISPs and Internet exchange providers.
The 10 cloud deployments across all major capital cities will also compliment the 5GN Cloud platform though increased access and high-speed data connectivity. This service will support ANZ’s growing demand for edge computing, which delivers cloud users a more compelling and highly valued content or application experience. The online sales and support portal at Intergrid will be further enhanced to enable service provisioning with a single click; 5GN customers and partners will now enjoy the benefits of Bare Metal or dedicated servers in all major city locations including all five (5) 5GN Data Centres.
The acquired assets at Intergrid will also accelerate the continued execution of the 5GN Infrastructure rollout to Australian data centre services. 5GN is expected to complete it own fibre rollout to over 80 data centres in Australia by the end of the year.
5G Networks Managing Director, Joe Demase stated,
“5GN are really excited to be working with Intergrid in growing our digital infrastructure capabilities. In a very short period they have developed a valuable customer base with many blue-chip ASX 200 and government customers who are committed to pursuing a cloud experience which is unique and world class. The capability for 5GN to now offer (Bare Metal) services at the edge, means that we can deliver dedicated cloud or hosting solutions pretty much to the front door of every major organisation in Australia. This enables content and application performances which are absolutely best in market.”
