SkyNetGlobal acquires Smart Apartments Pty Ltd for $500,000
SkyNetGlobal, (ASX: SKG), Australia's leading provider of wireless broadband solutions, today announed that it has acquired Smart Apartments Pty Ltd, a Melbourne based provider of broadband internet services that targets premier residential apartment buildings.
Smart Apartments Pty Ltd who trade as e-partments, has signed long term exclusive agreements with a total of 14 apartment buildings covering 4,950 homes in Melbourne, and has provisioned 7 buildings with 200 subscribers paying an average of $70 per month. In addition, e-partments has signed an exclusive preferred supplier agreement with Network Pacific Real Estate, who have access to 75 buildings covering approximately 3,600 apartments.
Smart Apartments' properties include many of Melbourne's finest buildings, such as the Melburnian, Rockmans, Regency Towers, Clarendon Towers and Bouverie Close in Carlton.
Under the purchase agreement, SkyNetGlobal will acquire 100% of Smart Apartments' issued shares from existing shareholders for $500,000 through the issue of 6,978,367 SkyNetGlobal ordinary shares. The founder of Smart Apartments, James Brader will stay with the company for a period of up to 3 months to ensure that that the business is successfully integrated with W Home. The company has no debt or liabilities and the transaction will be immediately cash flow positive for SkyNetGlobal.
CEO of SkyNetGlobal, Jonathan Soon said, "The Smart Apartments business is an ideal fit with SkyNetGlobal's W Home business. Both provide broadband solutions to apartment dwellers in large residential complexes. SkyNetGlobal will intergrate Smart Apartments into W Home and offer home automation products to its customers."
"We announced in May last year when we launched W Home, that our target was to sign 10,000 apartments in 2 years, the acquisition of Smart Apartments will make us 12 months ahead of target and provide us the base needed in Melbourne."
"W Home now has No. 1 market share in both Sydney and Melbourne, with a total national coverage of more than 10,000 apartments. Such a solid foundation will allow us to expand at a greater pace over the next 12 months with the objective of increasing our target revenue and earnings substantially," said Mr Soon.
ABOUT SKYNETGLOBAL
Listed on the Australian Stock Exchange (ASX: SKG) and headquartered in Sydney, SkyNetGlobal is a leading innovator of wireless broadband solutions specialising in 802.11 wireless (WiFi) & Home Plug powerline technologies. SkyNetGlobal's solutions include a global remote access service called "Connector" providing internet connectivity to 5000 wireless hotspots worldwide, and W Home, a smart home system designed to deliver efficiency, convenience and cost savings for apartment dwellers, offering broadband and home automation products. For more information please visit our website at www.skynetglobal.com
posted by JGB at
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