Spirit Technology Solutions has put its consumer broadband business on the market as it shifts focus to business customers.
Spirit’s consumer business involves broadband services to customers in large residential apartment buildings across Melbourne, Brisbane and the Gold Coast. It covers 97 buildings and some 18,000 connections.
The divestment is part of Spirit’s shift to focus on the business market, ranging from SME to large enterprises, specialising in security, cloud and IT services.
Spirit has engaged accounting firm BDO, specifically partner Tony Schiavello, to conduct a formal sale process on behalf of the company.
“As Spirit has evolved to a large integrated IT and telecommunications provider, it is in line with our strategy to divest the consumer assets, which are no longer core to our strategy. Proceeds from the divestment will be used to continue to acquire high growth assets across cyber security, cloud and IT services, which are in high demand within our B2B customer base,” Spirit managing director Sol Lukatsky said.
“These assets are unique, given the limited competitors servicing these types of residential buildings nationally. We see this divestment returning a material sum of capital to our balance sheet. Additionally, we’ve already had strong interest with several parties enquiring about acquiring these infrastructure and customer assets.”
Spirit said the consumer broadband unit uses a dedicated switched ethernet network to deliver end-user speeds of up to 1 gigabit.
Some of the buildings services by the unit include Eureka Tower, Freshwater Place, Yarra’s
Edge complex, Central Equities cluster – Southbank in Melbourne, as well as Southport Central.in the Gold Coast.
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