Perth-based telecommunications carrier Intelligent IP Communications has been acquired by Sydney-based BigAir Group for a cash and share package worth up to $20 million.
IIPC was founded in 2005 by Doug Childress and Jonathan Matthews, who will remain with the company once it operates within the BigAir Group as a subsidiary.
IIPC has a customer base of more than 500 across mining, retail, franchising, tourism, manufacturing and service industries. It was advised in the deal by Ernst & Young.
BigAir Group said the acquisition would provide it a foothold in the remote mining camp market, where IIPC has been providing communications systems that provide television, internet and phones in each room, as well as camp WiFi solutions.
IIPC generated revenue of $9.2 million and EBITDA of $1.4 million in the 2013 financial year.
The consideration will include an up-front payment of $10 million, comprising $6.5 million in cash payable on completion, with the remaining $3.5 million in BigAir Group shares.
A further $10 million will be payable based on performance over the next two financial years.
These funds will be paid in four semi-annual earn-out payments, made up of 80 per cent cash and 20 per cent shares.