Field Solutions Holdings (FSG) has bought networking companies IP Transit and Ordnance Networks in an effort to widen its Australian network.
The Belrose-based carrier initially paid $740,000 for the two companies collectively, claiming the acquisitions will give it network points of interconnect in NSW, Queensland, South Australia, Victoria and Western Australia.
According to the ASX-listed telco, the two companies operate a national carrier backbone, as well as offering carrier-specific products, services and software.
David Hooton founded both companies in 2015, Ordnance Networks was co-founded with Lee Campbell-Smith. Both founders have been appointed to unspecified management roles within FSG, the telco claimed.
“FSG has been growing consistently over the past two years, it is essential we now develop our underlying network backbone and POI infrastructure, including our network management software and automation,” FSG CEO Andrew Roberts said.
IP Transit specifically supplies wholesale on-demand internet connectivity for carriers and content providers, spanning Sydney, Brisbane, Melbourne, Adelaide and Perth.
FSG paid an initial amount of $340,000 for IP Transit, estimating final consideration payable of between $680,000-$900,000 by June 2020.
Meanwhile, Ordnance offers a network-as-a-service platform for telcos that allows them to design and build to the ongoing operation and support of their routing, switching and broadband termination solutions
FSG paid an initial consideration of $200,000, which will double to $400,000 depending on Ordnance’s revenue this year.
Together the two acquisitions are expected to contribute new revenue to the group of at least $1.2 million.
The announcement follows FSG winning a $500,000 grant by Bulloo Shire in Queensland for the construction of a new broadband network.