Data#3 takes over wi-fi player

Australian IT giant Data#3 has taken majority ownership of wi-fi analytics provider Discovery Technology.

Discovery Technology was already minority-owned by Data#3, but the latter exercised an option today to take its stake up to 56.7 percent.

Data#3 chairman Richard Anderson said that in light of majority ownership, his company would be "increasing its involvement in the management of Discovery Technology", without specifying details.

Brisbane-headquartered Data#3 acquired 42.5 percent of Discovery Technology in August last year for $2.5 million. Today's additional 14.2 percent has cost $500,000.

Data#3 chief executive Laurence Baynham said he was "pleased with how Discovery Technology has progressed over the last year".

"The wi-fi sector remains very active with opportunities that have been in the pipeline for some time now coming to fruition," he said.

Data#3's former CEO and current managing director John Grant will remain as chairman of Discovery Technology.

Anderson assured Data#3 shareholders that the cost involved in buying the additional Discovery Technology shares would be funded from "cash flow" and would not impact dividends. A further option to acquire the remaining 43.3 percent of Discovery Technology shares is due by 30 June 2017.

Discovery Technology, based in the northern Sydney suburb of Frenchs Forest, was established in 1997. Traditionally it dealt with "software development, network integration, VoIP and local & wide area networking", but in 2012 the company expanded into the wi-fi analytics field, developing its Connected Customer Experience software that integrates with the Cisco Mobility Services Engine.