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Spirit Technology Solutions (ASX:ST1) completes $21m divestment of fixed wireless assets

ASX News, Telecommunication
ASX:ST1      MCAP $57.39M
01 June 2022 17:09 (AEST)

Source: Spirit Telecom

Spirit Technology Solutions (ST1) has completed the sale of its wholesale fixed wireless assets to Maret Infrastructure for up to $21 million.

As announced previously, 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.

Following the sale completion and receipt of the upfront payment, the company’s balance sheet will be significantly strengthened to underpin its forward strategic plans with a net debt position of approximately $4 million.

Also in the terms, Maret will charge Spirit wholesale services fees for connected services under a wholesale services deal between the two companies.

Ultimately, the two companies will partner to develop and market new fixed wireless products using Maret’s spectrum assets, its new expanded network and Spirit’s large national salesforce.

ST1 has ended the day 4.08 per cent in the green with shares trading at 5.1 cents.

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