ASX-listed Spirit Technology Solutions has entered into and completed an agreement for the transfer of network assets to a Melbourne-based business associated with the Maret Group.
The transfer is in line with Spirit’s 2022 strategy, announced in June, to simplify its managed services IT&T business, reduce operating costs and sharpen focus on target customer segments.
Under the agreement, the network assets, which include Spirit’s remaining residential and selected non-core small business customers, have been transferred to the buyer.
Spirit has retained and will continue to provide services to its multi-product and larger business customers utilising the network assets under the new wholesale agreement.
The sale is expected to result in a positive impact of approximately of $1.5 - $1.8 million, in annualised terms, on the managed services segment profitability and cash flow, without taking into account one-off costs associated with the transaction. The network assets were transferred for a nominal upfront consideration. Spirit could receive up to $3 million in earn-out payments over two years.
Spirit managing director Julian Challingsworth said, “The expanded wholesale arrangement is a continuation of our strategy to focus on technology solutions. It accelerates the simplification of our business, allows us to improve our focus on our target customer segment and delivers an immediate positive impact to the bottom line.”
The principals of the Maret Group said, “This transaction continues the growth of data and telco services provided by Maret Group and its related entities. The acquired Network Assets are incredibly complementary to our business units and further enhance the businesses product offerings and ability to grow.”
During the first half of the financial year, Spirit sold off its fixed wireless for $21 million to telco operator Maret Group, and its residential internet business to DGTek for $5 million.
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