7th Jan 2011. BigAir Group Limited (ASX:BGL) is pleased to announce that it has entered into a binding share sale agreement to acquire all of the shares in AccessPlus Pty Limited. AccessPlus is the leading provider of outsourced managed Internet services in the tertiary student accommodation market within Australia.
BigAir will acquire AccessPlus for an aggregate purchase price of $5m comprising: $1,750,000 cash and $500,000 worth of BigAir shares payable immediately (based on the 5 day volume weighted average price of BigAir shares as at 5 January 2010 which is 19.9c); $1,375,000 cash to be paid in 12 months; $1,375,000 cash subject to an EBIT adjustment payment of plus or minus $340,000 based on the performance of the AccessPlus business in the 2012 calendar year as against a specified EBIT target.
AccessPlus will operate as a wholly owned subsidiary within the BigAir group. During the course of 2010 BigAir intends to review the delivery of existing services via both the BigAir Universe Broadband (formerly Star-Tech) systems and the AccessPlus systems. The aim will be to extract the best from both in order to offer unmatchable systems and services in the student accommodation and related markets.
AccessPlus has more than 10 years experience and approximately 20 sites under management on long-term multi-year contracts. In time BigAir’s high speed fixed wireless backhaul network will be installed into each AccessPlus student accommodation site, interconnecting with high speed local access wired and wireless networks installed and owned by AccessPlus. This combination of reliable end to end high speed infrastructure will enable it to deliver fast and affordable Internet data, voice and video solutions to tertiary students in residence across Australia. This integration is also expected to deliver cost synergies to the Group.
BigAir owns and operates Australia’s largest metropolitan fixed wireless broadband network. The Australian business market comprises nearly one million businesses and BigAir’s network provides near blanket coverage across its seven largest cities Sydney, Melbourne, Brisbane, Perth, Adelaide, Newcastle and the Gold Coast. BigAir sells broadband and data services primarily through its channel partners who include ISPs, Carriers, and other IT service companies who have existing relationships with business customers in order to deliver BigAir’s high speed, cost effective fixed wireless broadband solutions.