Tomizone buys Bluesky Online Services in cash and shares deal
- 08 September, 2017 09:54
Tomizone is looking beyond Wifi in its Bluesky acquisition
ASX-listed Tomizone has embarked on what it describes as the "first step" of its strategy to grow the business through acquisitions, buying Bluesky Online Services.
The Wi-Fi services provider will purchase the New Zealand-based managed services provider for a combination of cash and shares, made up of $142,500 in cash and 6.67 million Tomizone shares.
Tomizone share were trading today at two cents each, valuing the transaction at something under $300,000.
"Bluesky represents a first and important step for Tomizone," Tomizone chairman Ian Bailey said.
"We are currently evaluating other additional acquisitions to further strengthen and advance our strategy, and look forward to providing further details on how such transactions will deliver further value for our shareholders."
Bluesky delivers a range of managed services to businesses, including telecommunications and IT related products, with a focus on voice over internet protocol, wireless network services (including Wifi), data security, cloud-based technology solutions and data centre operations.
"It has focused on the medical and corporate sector and now has a significant base where Tomizone Wifi services can be expanded and installed," Tomizone told shareholders today.
"The acquisition will drive customer base growth by giving the Tomizone Wi-Fi business access to Bluesky’s loyal customer base, including businesses operating in 'high-wait' locations such as medical centres and dental clinics."
Tomizone currently operates over 2,000 data access points across Australia and New Zealand.
The deal will allow Tomizone to strengthen its revenue base, the company said, by offering a range of additional managed services such as VOIP, IT management and wireless access management.
"The Bluesky acquisition is the first step in Tomizone’s evolution into a one-stop-shop provider for the support of its customers and progresses towards ensuring that the company has both vertical and horizontal integration of its business," it said.
Tomizone will also appoint Bluesky managing director Gary Myburgh as chief information officer. The deal will also allow the business to rehouse and better manage its own infrastructure and data centre.
Tomizone said the buyout would deliver positive EBITDA of around $400,000.