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Telecommunications BroadIP buys ISP Ideal Internet
Telecommunications BroadIP buys ISP Ideal Internet | BroadIP buys ISP Ideal Internet |
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| by Stuart Corner | |
| Sunday, 04 June 2006 | |
  
"The acquisition provides BroadIP with a mix of dial-up, DSL and hosting contracts and creates an opportunity for the company to up-sell its VoIP and broadband services as the infrastructure becomes available in those areas," BroadIP said. The acquisition includes the client database, several servers, billing system, CRM and associated software, but will not involve the transfer of any employees because the business will be integrated within BroadIP's own infrastructure: all hardware will be transferred to BroadIP's secure operating centre, achieving further savings on colocation costs. BroadIP will pay $50,000 in cash and six million shares in two tranches at 5.0 cents per share. It says the deal represents "a very favourable multiple of two times current estimated earnings before interest and tax". The company says it is in discussions on further acquisitions. |
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