AMCOM Telecommunications has agreed to buy Amnet’s Internet service provider and information technology businesses.
Under the agreement, Amcom will pay up to $2.25 million to purchase Amnet IT, comprised of the ISP and IT businesses.
The payment will be split between $1.5 million and $2 million in cash – depending on certain performance outcomes – from its existing reserves, with the balance to be paid in cash or shares at Amcom’s discretion.
Amcom forecasts that Amnet IT will contribute a minimum of $5.5 million in additional revenue, increase its earnings before interest, tax, depreciation and amortisation by a minimum of $80,000 and provide a minimum additional net profit after-tax contribution of $500,000.
Amnet IT specialises in small to medium-sized enterprises, corporate, government and education sectors.
Its services include broadband Internet, SMS facilities under the ezeSMS brand, network design, installation and management, and service collocation and hosting.
Amnet was recently awarded the $4.7 million contract to provide Internet services to the Western Australian Government for three years with a two-year option.