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- United Networks (UNL) has acquired the business assets of data solutions provider C3 Innovations
- In exchange for the assets, United Network will pay $250,000 in cash and issue 3.75 million shares, followed by a 12-month bonus payment of $25,000, if the assets reach certain earnings milestones
- United Networks expects the new assets to contribute around $700,000 in annual recurring revenue and $250,000 in earnings before tax and interest
- The deal forms part of United Networks ongoing strategy and follows the acquisition of Broadland Group, Symmetry Networks and Next Com over the last 12 months
- United Networks’ share price is steady today, with stock trading for 4.2 cents
United Networks (UNL) has acquired the business assets of data solutions provider C3 Innovations.
C3 Innovations specialises in providing unified communication services as well as hosting and managing data for a range of different companies. In exchange for the assets, United Network will pay $250,000 in cash and issue 3.75 million shares, followed by a 12-month bonus payment of $25,000, depending on earnings targets.
United Networks financed the acquisition with cash-on-hand. With the addition of the new assets, United Networks expects around $700,000 in annual recurring revenue and $250,000 in earnings before tax and interest.
This is the company’s fourth acquisition in the last 12 months and is part of an ongoing strategy to build recurring revenue through the addition of complementary businesses.
As part of the strategy, the company recently acquired Broadland Group, as well as Symmetry Networks and Next Com. The former company was purchased in an all-share deal of 265 million shares, with the two latter companies purchased for $340,000.
CEO of United Networks, Victor Tsaccounis commented on the company’s latest acquisition.
“We expect to build on our acquisition momentum and make further positive announcements over the next two quarters. C3 Innovations aligns strongly with our focus on increasing the recurring revenue of the business through both strategic acquisitions and organic growth,” Victor said.
“The business allows us to leverage our system’s know-how and scale to generate further earnings to the bottom line. I look forward to announcing our financial year 2020 full-year results for the group later this month,” he continued.
United Networks’ share price is steady today, with stock trading for 4.2 cents at 1:26 pm AEST.
