Consolidation in the IT sector is continuing, with fixed wireless broadband operator BigAir launching a $9.6 million takeover offer for Clever Communications.
The cash and script deal comes two years after BigAir successfully fought off a takeover bid from Clever Communications, and values Clever Communications shares at 8.3c, about 18% higher than the shares were last trading.
The chairman of BigAir, Paul Tyler, says the deal will create significant cost, revenue and capital-expenditure synergies.
“The customers of both companies will benefit from the expanded network coverage and also the combined engineering and commercial strengths of the two organisations. This deal is part of our ongoing commitment to providing business broadband users with a compelling alternative to fixed line networks,” Tyler said in a statement to the ASX.
Tyler says the deal will contribute to earnings per share shortly after an integration period is completed, and says the combination of the two companies fixed broadband network should provide a further sales boost.
The board of Clever Communications has unanimously recommended the deal, although a timetable for the bid is yet to be released.
BigAir reported a 17% increase in revenue for 2009-10, up to $7.7 million, while net profit climbed 72% to $2.2 million.
Clever Communications’ revenue fell 14% during the period to $12.2 million, with profit up 650% to $2.4 million.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
