Fixed broadband wireless network operator BigAir is to acquire another fixed wireless network operator Link Innovations whose network covers Sydney, Melbourne, Perth, Brisbane, Newcastle and a number of regional markets including Gosford, Coffs Harbour and Dubbo.
BigAir says that Link has a complementary wireless network that extends the reach of its footprint in several key markets and is expected to deliver significant cost, revenue and capital expenditure synergies. It expects Link to contribute revenue between $2.4m and $2.8m in FY2013 and approximately $800,000 in annualised EBITDA.
BigAir will pay between $1.75m and $2.75m based on the performance of Link in FY13 and FY14. Link will operate as a wholly owned subsidiary and managing director, Jerry Wolsztyniak, will remain with the company.
BigAir said the upfront cash payment and any future performance cash payments would be paid from existing cash reserves and from net operating cash flow, and the company remains debt free.
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