ASX-listed broadband play Spirit Technology will sell its wholesale fixed wireless assets to privately-owned Maret Group and use the capital to fund growth in its SMB technology and cyber solutions businesses.
It is understood Spirit Technology has cut a $21 million deal to sell its predominantly east coast rooftop towers portfolio, including a $15 million upfront payment and another $6 million in earn-outs over the coming two years, subject to revenue hurdles.
The deal would see Maret Group’s infrastructure arm take control of the towers, while Spirit would retain the business customer relationships and revenue in return for a wholesale services fee. The two plan to work together to chase new customers, combining Maret’s towers and spectrum with Spirit’s existing customer base and sales staff.
It’s a big deal for ASX-listed Spirit Technology, which has about a $50 million market capitalisation and reported $10.9 million EBITDA last financial year. Its substantial investors include Thorney and Regal Funds.
Spirit Technology’s expected to retain the proceeds to repay debt and invest in its other businesses. Boutique Latimer Partners advised Spirit Technology.
The deal’s expected to be announced on Monday morning. Spirit Technology shares went into a trading halt late last week ahead of the divestment being agreed.