ASX newbie 5G Networks is raising $3.5m to buy corporate network provider APTel
Emerging telco 5G Networks, which is building its own fast wireless broadband network and cloud computing service, is buying APTel (Asia Pacific Telecommunications Group), part of the property group Deague, in $6 million deal.
5G Networks (ASX/l5GN) listed on the ASX in November, raising $4 million at 25c a share.
APTel is a 20-year-old Melbourne based voice, data and cloud communications service provider with 800 mid-market clients — mostly corporate, hotel groups and commercial offices.
5G Networks is planning to build its own wireless broadband network and cloud computing service, initially targeted at mid-market corporates who are not directly connected to the National Broadband Network.
Its shares jumped from 73c to 78c after the announcement — but cooled to 74c by 11am AEDT.
5G will raise $3.5 million at 60c a share to fund the purchase of APTel, which has revenue of more than $6.3 million.
“The acquisition of APTel is a significant illustration of the strategy that we outlined in our IPO prospectus,” says 5G Networks Managing Director Joe Demase.
“The integration of the APTel service suite with our own offering delivers a powerful business solution that can meet the modern demands of the mid-tier business market for broadband and cloud services.”