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Australian ISP Aussie Broadband has officially acquired Brisbane-based telecommunications and IT solutions provider Over the Wire for $344 million.
The strategic purchase is Aussie’s first acquisition from another company.
“Today marks a new era for Aussie Broadband. With this acquisition, we will transform our organization into the best of Aussie Broadband and Over the Wire. We have been working on this moment for some time now, and we are absolutely delighted to officially welcome Over the Wire to the Australian family.
The integration will see the Aussie Broadband team expand to over 1,000 employees.
As part of the acquisition, On the wire brings approximately 16,000 commercial, corporate, government and wholesale customers to Aussie’s existing customer base. The company also has more than 700,000 active numbers on its voice network.
“We will be working diligently on this integration over the next few months. In the meantime, we will continue to provide our excellent support to Aussie Broadband and Over the Wire customers,” Britt said.
Founded in 2005, Over the Wire is an integrated technology company and platform provider, focused on tailored solutions for businesses and enterprises.
The company’s stated goal is to simplify technology to empower businesses and make things as easy as possible for the customer.
Over the Wire Group Managing Director and CEO Michael Omero says he’s excited to see what the two companies can accomplish together.
“Today marks the beginning of a new chapter in our journey, and we are thrilled to join a company that shares our values and our commitment to customer service.
“This is an opportunity-based unit. Together we will expand Aussie’s presence in Australia and create something quite unique in the market, combining voice, cloud and security services. of Over the Wire with Aussie Broadband’s fiber assets and high-quality network.
“We look forward to working together to change the telecommunications game for customers across Australia,” Omero said.
Phillip Britt said the integration will bring many benefits to both companies.
“Over the Wire is a great fit for us and we think they will complement our current commercial/corporate offerings very well. They are also one of the few Tier 1 voice providers in Australia,” said Britt.
“We see the voice element as a key strategic element. The need for high quality voice capabilities is something that has rapidly increased, especially in the wholesale industry. We plan to transform our business platform Carbon into a complete service offering for all enterprise and enterprise communication and IT needs, so we see the voice element coming into the platform in a big way.
“Another key strategic element is Over the Wire’s cloud and security business. We are seeing a growing demand for cloud and security services as companies seek solutions to protect their data,” said Britt.
“One of the key benefits of Over the Wire’s cloud offering is that they own all the infrastructure, either in their own data center in Brisbane or in third-party data centers nationwide. The cloud offering is primarily aimed at large governments and large enterprises, and this integration is a good opportunity to expand further in these areas,” Britt continued.
The joint venture is expected to generate annual cost synergies of between $8 million and $11 million within three years, according to the company.
“Ultimately, this acquisition gives us the opportunity to expand our product and skill-set capacity, and further accelerate our growth in the corporate and wholesale markets in Australia. We believe that together we will be stronger and we can bring something extraordinary to the telecommunications industry,” said Britt.
As part of the agreement, Michael Omeros will join Aussie Broadband’s board of directors.
Michael has over 25 years of experience in the IT, telecommunications and data industries. In 2015, he led Over the Wire to a successful launch on the ASX. Since then, Michael has overseen significant expansion of the business through a combination of organic growth and acquisitions.
In a statement, the Aussie Broadband Board of Directors recognized the outstanding contribution of outgoing Board Member, Chief Technology Officer John Reisinger.
“While John will continue as Chief Technology Officer of the expanded group, we believe it is extremely important to recognize the outstanding contribution he has made over the past 18 years, since the initial formation of the predecessor company of ‘Aussie Broadband up significant growth in recent years. today’s milestone,” said Board Chairman Adrian Fitzpatrick.
“John has overseen the development of our award-winning software and network infrastructure, which has been the foundation for our rapid expansion. He has one of the most creative technical minds in the industry, and we look forward to his continued contribution and leadership within the larger group,” said Britt.