Spirit Telecom (ASX:ST1) says it will achieve an immediate geographic expansion across Sydney Metro & Central NSW, with the acquisition of the three IT Managed Service providers - Reliance IT, Beachhead Group, and Altitude IT - while accelerating the growth of the Spirit Solution Partners network.
According to Spirit, the three businesses bring strong sales, IP, products, IT engineering skills and generate $12.0 million in combined revenue with 60% of this recurring revenue representing cash EBITDA of $2.5 million for FY20 and a 21% EBITDA margin.
“Over the past year Spirit has completed 8 additional acquisitions, driving its transformation from offering high speed internet to becoming the “one stop shop” for all of the telco and IT needs for Australian businesses – happily embracing the company’s Digital X platform and suite of products services to supporting functions including Sales, IP, Products, IT Engineering skills, and managed IT,” Spirit said in a statement on Thursday.
“This all in one provider strategy is already providing a return the company – with business customers flocking to Spirit, embracing its “one provider, one monthly bill and one-point person to solve problem” attitude.
“It’s also driving investor support for ST1 which has grown its market cap from $43m to $170m, and share price by 168% - in just 5 months. The company’s FY20 Full Year results announced on Tuesday showed a 100% growth on revenue YOY from $17.4m to $39.4m - and already FY21 is off to a flying start.”
“If one clear theme is emerging in Australia’s A$143b Telco & IT services industry, it’s that “the pandemic has forced the structural merger of telco and IT, and will continue to do so,” according to Sol Lukatsky, CEO of Spirit Telecom.
Lukatsky said Spirit is showing no signs of slowing down, enacting on its clear strategy to disrupt the fragmented IT services market, and continuing to challenge the major telcos to build market share in the SMB segment.
As reported by iTWire, Spirit Telecom announced its 2020 full year results this week trumpeting record growth of the business for 2020, with revenue increasing 100% to $34.9 million and an after tax net loss of $1.5 million.