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- 5G Networks (5GN) has entered into an agreement to fully acquire cloud network provider Intergrid Group for $3 million
- The purchase price is four times the group’s normalised EBITDA and is made up of $2.5 million in cash and $0.5 million in 5GN shares
- 5GN says the acquisition will further strengthen its range of wholesale cloud offerings through a national and international network
- The buyout is expected to bring in $2.5 million in annual revenue within the first 12 months of the partnership
- 5GN Shares are up 3.23 per cent, trading at $1.28
5G Networks (5GN) has entered into an agreement to fully acquire cloud network provider Intergrid Group for $3 million.
5G Networks is a telecommunications carrier operating across Australia, which owns and operates its own nationwide high-speed data network.
The purchase price is four times the group’s normalised EBITDA and is made up of $2.5 million in cash and $0.5 million in 5GN shares.
Intergrid operates a large cloud network of dedicated servers, with extremely low latency connectivity to all major ISPs and internet exchange providers.
5GN says the acquisition will further strengthen its range of wholesale cloud offerings through a national and international network.
The company expects the buyout to bring in $2.5 million within the first 12 months of the partnership.
The new cloud deployments will complement 5GN’s existing cloud platform through increased access and high-speed data connectivity. This service will support ANZ’s growing demand for edge computing, which the company says will deliver users a more compelling and highly valued content or application experience.
The online sales and support portal at Intergrid will also be further enhanced to enable service provisioning.
“5GN are really excited to be working with Intergrid in growing our digital infrastructure capabilities,” said 5G Networks Managing Director Joe Demase.
“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.”
5GN is expected to complete its own fibre rollout to over 80 data centres in Australia by the end of the year.
5GN Shares are up 3.23 per cent, trading at $1.28 at 1:30 pm AEDT.
