- Spirit Technology Solutions (ST1) is selling its wholesale fixed wireless assets to Maret Infrastructure in a deal worth up to $21 million.
- Under the deal, Maret will acquire the infrastructure assets, while Spirit will retain its business customer relationships and revenues
- Maret will also charge Spirit fees for connected services under a wholesale services agreement between the two companies
- Spirit Managing Director Sol Lukatsky says today’s deal comes alongside an “internal transformation project” within the company as it worked to reduce costs
- Shares in Spirit Technology Solutions are up 9.21 per cent to 8.3 cents each at 10:29 am AEST
Spirit Technology Solutions (ST1) is handballing its wholesale fixed wireless assets to Maret Infrastructure in a sales deal worth up to $21 million.
Under the deal, Maret will pay Spirit $15 million upfront plus up to $6 million in earn-out payments over the next two years.
While Maret will acquire the infrastructure assets, Spirit said it would retain its business customer relationships and revenues and the opportunity to cross-sell its broader product portfolio to this customer base.
In return, Maret will charge Spirit wholesale services fees for connected services under a wholesale services deal between the two companies.
Spirit Managing Director Sol Lukatsky said today’s agreement came alongside an “internal transformation project” within the company as it worked to reduce costs.
“This is a highly important transaction for the company, and we are able to retain end-to-end service ownership of the business customers in addition to accessing an exciting new range of advanced fixed wireless products using Maret Group’s spectrum assets,” Mr Lukatsky said.
“Combined with the divestment of the consumer business last October, the proceeds
of this sale, once completed, will have returned over $20 million in cash to our balance sheet in FY22.”
Meanwhile, Maret CEO Paul Torrisi said the purchase of Spirit’s infrastructure would expand Maret’s network reach “substantially”.
“The combination of our existing wireless networks, the acquired network, and our licensed spectrum creates an enormous opportunity for us, in partnership with Spirit, to offer superior quality and high-speed data services across a broad geography,” Mr Torrisi said.
The companies said they expected the transaction to be completed in early June 2022 upon the satisfaction of customary conditions and requirements for a transaction of this nature.
Shares in Spirit Technology Solutions were up 9.21 per cent to 8.3 cents each at 10:29 am AEST.