- Spirit Telecom (ST1) has announced a raft of good news, including the successful completion of an $18.2 million placement and three new acquisitions
- The IT companies Spirit has acquired include Altitude IT, Beachhead Group and Reliance Technology
- All of the companies are based in Sydney and the Central NSW, allowing Spirit to expand its market
- Meanwhile, the capital raise consists of the recently completed placement and a $5 million share placement plan
- The additional equity will be used to fund more acquisitions, expand the company’s marketing and grow its SpiritX platform
- Shares in Spirit Telecom are trading up 8.11 per cent for 40 cents each
Spirit Telecom (ST1) has announced a raft of good news, including the successful completion of an $18.2 million placement and three new acquisitions.
Acquisitions
Amongst the businesses being acquired by Spirit is Altitude IT, a Sydney-based company which has customers in the industrial sector.
The other acquisition is Beachhead Group, another Sydney-based IT company which deploys its services to both business and private schools.
The third and final acquisition is Reliance Technology, an IT and Telco Services Provider based in Central NSW, which provides its services to customers throughout that region.
Spirit says these three companies will provide instant market expansion, as well as an additional $12 million in combined revenue. Significantly, over 60 per cent of that figure is recurring revenue.
While Spirit didn’t reveal exactly how much it paid for the companies, it did say they would all be rebranded as ‘Spirit Solution Partners.’
Capital raise
Along with the acquisitions, Spirit also revealed today it had successfully completed its recently announced placement, raising $18.2 million. Of that figure, $17.88 million came from investors, while $360,000 came from management.
The company plans to raise an additional $5 million in capital through a share purchase plan (SPP), which will be available to eligible shareholders.
Under the SPP, around 15.6 million new shares will be priced at 32 cents each — the same price offered to those participating in the two-tranche placement.
Spirit will use the $23.2 million in capital raise funding to support more acquisitions, expand its marketing and grow its SpiritX platform.
“The new funds raised will allow Spirit to accelerate growth, organically and via further acquisitions,” Spirit Telecom’s Managing Director Sol Lukatsky said.
“We have recently signed 21 new partners, and now with these transactions and new funding lines our sales network expands at pace nationally,” he added.
Shares in Spirit are trading up 8.11 per cent for 40 cents each at 12.56 pm AEST.