Australian communications provider Spirit Technology Solutions to sell data center and network assets to Maret.
The ASX-listed this week announced it would transfer ‘select data center and network assets’ to Australian telecommunications infrastructure firm the Maret Group.
What data center assets were included in the deal weren’t shared. The company said that as part of the deal, Spirit would receive services on a wholesale basis from Maret to serve its customers.
Under the agreement, the network assets, including Spirit’s remaining residential and selected non-core small business customers, have been transferred to the buyer. Spirit has retained and will continue to provide services to its multi-product and larger business customers using the network assets under the new wholesale agreement.
Spirit managing director Julian Challingsworth said: “The expanded wholesale arrangement is a continuation of our strategy to focus on technology solutions. It accelerates the simplification of our business, allows us to improve our focus on our target customer segment, and delivers an immediate positive impact to the bottom line.”
The principals of the Maret Group added: “This transaction continues the growth of data and telco services provided by Maret Group and its related entities. The acquired Network Assets are incredibly complementary to our business units and further enhance the businesses product offerings and ability to grow.”
The sale is expected to result in a positive impact of approximately $1.5 - $1.8 million in annualized terms, on the managed services segment profitability and cash flow, without taking into account one-off costs associated with the transaction. The network assets were transferred for a nominal upfront consideration. Spirit could receive up to $3 million in earn-out payments over two years.
Founded in 2005 and formerly known as Spirit Telecom, Spirit offers managed IT services, telecommunication services, cloud services, and cybersecurity services. The company is undergoing a restructuring to focus more on its solutions and services and reduce its infrastructure ownership.
Earlier this year Spirit completed the sale of its wholesale fixed wireless assets to Maret Infrastructure for up to $21 million; the deal saw Spirit retain the customer relationships. Last year the company sold its residential internet business to Melbourne-based DGTek for $5 million.
Latimer Partners said it has previously advised Spirit on the sale of data center and network assets to XYZ Telecom.
Maret operates Maret Infrastructure Pty Ltd, a wholesale operator of expansive fixed wireless and 5G networks; MarchNet, a telecommunications carrier focused on remote and regional connectivity; and Freedom Internet, which uses fiber and radio networks to deliver connectivity to apartment buildings and commercial clients.