Sol Lukatsky (Spirit)
Publicly listed Spirit Technology Solutions has sold its wholesale fixed wireless assets for about $21 million to Maret Infrastructure.
The sale involves $15 million upfront plus up to $6 million earn-out payments over two years, subject to reaching revenue targets.
While Maret Group is buying the infrastructure assets, Spirit will retain the business customer relationships and revenues as well as core network assets delivering that revenue.
Maret Group will charge Spirit a wholesale last-mile service fee for connected services.
The two companies will also partner up using Maret Group’s spectrum licensing assets and newly acquired network to develop and market fixed wireless products.
“The acquisition of Spirit’s fixed wireless infrastructure expands our network reach substantially,” Maret Group CEO Paul Torrisi said.
“The combination of our existing wireless networks, the acquired network and our licensed spectrum creates an enormous opportunity for us in partnership with Spirit to offer superior quality and high-speed data services across a broad geography.
“We look forward to working with Spirit and welcoming the incoming team members to Maret Group.”
Spirit told shareholders proceeds from the sale will be reinvested to accelerate growth and increase profitability in its key small- to medium-sized business (SMB) technology and cyber solutions markets.
Spirit Group managing director Sol Lukatsky said this was a highly important transaction as it retains end-to-end service ownership of the business customers in addition to accessing a new range of advanced fixed wireless products using Maret Group’s spectrum assets.
“In addition, this transaction returns a material amount of capital for a company of our size,” he said.
“Combined with the divestment of the consumer business last October, the proceeds of this sale (once completed) will have returned over $20M in cash to our balance sheet in FY22.
“Spirit is also undertaking an internal transformation project (Spirit 2.0) to reduce costs and ensure it is well positioned to capitalise on the growth we are seeing for our services in the SMB market and cyber solutions.”
The transaction is expected to be completed in early June.
In April, Spirit merged two of its business units together in an effort to save costs, increase margins and boost customer experience.
The telecommunications and IT service provider intends to merge its IT&T (IT and telco) division with Trident, a unit formed out of its acquisition of Trident Business Group in 2020.
The move will see Trident’s name absorbed into the IT&T moniker as Julie Riggs, former COO of Trident, is named CEO of the merged business, who will report to Lukatsky.
