BigAir Group has entered into a share sale agreement to acquire Intelligent IP Communications for up to $20 million in cash and shares.
The acquisition of IIPC, a Western Australia-based telecommunications carrier, is expected to contribute more than $3 million in annualised EBITDA due to cost savings and substantial cross-selling opportunities.
It is also expected to be EPS accretive in FY2014 since it is funded largely through a debt facility.
Earnings are expected to improve further in subsequent years through realisation of additional cost synergies, ongoing organic growth and via cross-selling into the BigAir customer base.