Telecom Lead Asia: Fixed wireless broadband operator
BigAir has acquired WiMAX provider Allegro for up to $10.5 million.
Allegro will become a wholly-owned subsidiary of BigAir.
Allegro’s current managing director will stay on board
after the deal closes.
Allegro built Australia’s first certified WiMAX network
using 3.5GHz spectrum acquired in 2006.
The company provides services for small, medium and large
businesses, as well as tertiary student accommodations.
BigAir CEO Paul Tyler said that after Allegro is merged
with BigAir’s own student accommodation division, the company will be serving
around 27,000 beds across 124 sites.
Allegro is expected to generate between $5 million and $6
million in revenue for BigAir in FY13.
The acquisition is expected to deliver significant cost,
revenue and capital expenditure synergies.
The deal will involve a $7.5 million payout on
completion, comprising 50:50 of cash and stock.
BigAir will pay up to $3 million within 30 days of the
publication of Allegro’s FY13 accounts, with the final sum to be based on
revenue earned. This earn-out is contingent on student revenue exceeding $2.2
million, or non-student revenue topping $3.3 million.
