Joe Demase (5G Networks)
Telecommunications carrier 5G Networks (5GN) has snapped up dedicated cloud provider Intergrid for $3 million, with the deal expected to bolster its range of its wholesale cloud offerings.
Founded in 2016, Intergrid offers bare metal servers and cloud servers, as well as co-location and IP transit services, with it operating a cloud network of dedicated servers across seven regions in Australia and Auckland in New Zealand.
Under the acquisition, which consists of $2.5 million in cash and $500,000 in 5GN shares at a volume-weighted average price on date of issue, Intergrid’s whole workforce is expected to make the transition over to 5GN ownership, with the dedicated cloud provider operating under its own brand in the short term.
Through the deal, 5GN will be able to offer bare metal services at the edge, according to the telco carrier's managing director Joe Demase, with 5GN customers and partners able to access bare metal servers across major cities, including at all five of 5GN’s data centres.
“5GN are really excited to be working with Intergrid in growing our digital infrastructure capabilities. In a very short period they have developed a valuable customer base with many blue-chip ASX 200 and government customers who are committed to pursuing a cloud experience which is unique and world class,” he said.
“The capability for 5GN to now offer [bare metal] services at the edge, means that we can deliver dedicated cloud or hosting solutions pretty much to the front door of every major organisation in Australia. This enables content and application performances which are absolutely best in market.”
Intergrid’s 10 cloud deployments across major capital cities will also complement 5GN’s Cloud platform with claims of increased access and high-speed data connectivity to support edge computing
Additionally, acquired Intergrid assets are set to accelerate 5GN’s infrastructure rollout to Australian data centre services, with its fibre rollout expected to reach over 80 Australian data centres by the end of the year.
This is the latest acquisition for the telco carrier, with it snagging data centre services and hyper-speed data networks wholesale provider ColoAU in July and a Brisbane data centre in December, as well as digital services provider Webcentral in September, which has faced numerous challenges since then.
The combination of all its acquisitions over the last six months hit its bottom line in its half yearly results ending 31 December 2020, with acquisition and transaction costs of $2.6 million and a non-cash share based payments expense of just over $1 million.
