Privately-owned telecommunication services firm ASTIB Group has been sold to Singapore-based CSE Global in a deal worth up to $49.6 million.
Privately-owned telecommunication services firm ASTIB Group has been sold to Singapore-based CSE Global in a deal worth up to $49.6 million.
CSE's local arm will acquire ASTIB for an initial consideration of $30 million cash and 5 million CSE shares, with a further payment of 15 million shares to follow provided certain profit targets are met over the next two years.
ASTIB was started in 1995 by Robert and Wendy Sofoulis, and currently employs 91 staff at offices in Perth, Darwin and Cairns.
Last financial year the company had revenue of $30.6 million and an after-tax profit of $4.4 million.
The company provides tailored telecommunication solutions encompassing design, engineering, installation and support services to clients such as BHP Billiton, Woodside and Multiplex.
Business sales firm Mergers & Acquisitions brokered the sale, having established a relationship with ASTIB's owners after aiding the company in acquiring Memo Communications a few years back.
Senior consultant Todd Grover handled the deal, and said he received two written and one verbal offer for the company, with the unsuccessful bids coming from Australian and US-based firms.
He said that ASTIB had attracted global attention due to its high reputation and specialized work.
"ASTIB is pretty much the premier business of its type in Australia, and even in Asia-Pacific," Mr Grover said.
"It's a clear market leader in what it does, there's nobody else doing the radio communications the way they do, and they also have exclusive arrangements with some very heavyweight international suppliers."
Mr Grover said that ASTIB and its member companies, including Memo Communications and Comsource International, were entering a period of rapid growth that would require a significant amount of investment and additional resource.
"Basically, the business was owned by Bob and Wendy and that private ownership limits the ability to fund its growth opportunities, so that was the driver for the sale," he said.
"The bigger balance sheet and will enable Astib to compete against multinational competitors."
Mr Sofoulis is planning to stay with the company as managing director for the next couple of years, with Mrs Sofoulis planning to step back from the business' board of directors
Mr Grover said that it was still undecided as to what name ASTIB would trade under, as CSE and ASTIB had strong brands, with ASTIB being a major sponsor of the Perth Wildcats.
