Aussie Broadband Tech News

Aussie Broadband in talks to buy Over The Wire

Offering $5.75 per share.

Aussie Broadband is in exclusive talks to purchase Over The Wire, a telecommunications and IT solutions provider based in Brisbane.

The telecommunications company confirmed in an ASX statement Friday morning that discussions “about a possible combination” were underway following a report in The Australian.

However, he stressed that “discussions are preliminary and incomplete, no agreement has been reached on any transaction”.

“There is no guarantee that any agreement will be reached or that a transaction will take place,” said the operator minutes after Over The Wire came to a halt.

In a separate statement later on Friday, Over The Wire informed the market that it received an “unsolicited, non-binding indicative offer” on October 14 before entering into a pleading.

He said Aussie Broadband offered $ 5.75 per share as part of a plan of arrangement. The company’s shares last traded at $5.

“The consideration for the proposed program is $ 5.75 in value per OTW share, with the combination of cash and script consideration to be determined,” the ASX statement said.

Aussie Broadband will now “undertake due diligence and negotiate the documentation of the transaction for a period ending November 30, 2021”.

Discussions between the two companies come after chief executive Phillip Britt revealed in August that the company planned to make “at least one acquisition” by the end of 2021.

Since then, Aussie Broadband has sought to raise approximately $ 120 million in capital to finance acquisitions and technology development.

The ASX-listed company acquired Zintel, Fonebox and Digital Sense during this period, which it said would provide “a strong platform to curb a variety of new recurring revenue streams.”

Former CEO Scott Smith resigned from Over The Wire in August, after just over a year in office, and left in late September.

Matthew Giannelis

Secondary editor and executive officer at Tech Business News. Contracting as an IT support engineer for 20 years Matthew has a passion for sharing his knowledge of the technology industry.

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