Spirit Telcom (ASX:ST1) has agreed to acquire VPD Group for around $14 million.
VPD Group is an established voice, data and cloud services provider operating in Queensland and NSW.
Spirit describes the acquisition as its most transformational transaction to date. It will see Spirit create a new wholesale business.
More than 85 per cent of VPD Group’s revenue is recurring, with a 98 per cent retention rate across the Mining, Aged Care and Industrials sectors.
Spirit says that “Following the VPD Group acquisition [it] will have a combined revenue run rate of: $70M-$75M (FY21) that delivers a strong integrated sales opportunity across Internet, Security, Cloud and IT services – now across every state in Australia”.
Spirit has also signalled that the VPD Group Co-Founders will take senior roles across Spirit.
Shares in Spirit Telcom (ASX:ST1) are trading 10.98 per cent higher at 23 cents.