Spirit Telcom (ASX:ST1) to acquire VPD Group

Company News

by Katrina Bullock

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.
 

Katrina Bullock

Finance News Network
Katrina is a respected TV journalist, as well as a renowned presenter and award winning lawyer. She holds a Bachelor of Laws (Honours 1st class, division 1), a Bachelor of Business (with Distinction) and is currently undertaking a PhD in Law focused on stock exchange disclosures and corporate governance. She began her career as a corporate lawyer in an Australian top tier commercial law firm and is currently the General Counsel of Greenpeace Australia Pacific. In 2020 Katrina was named one of the 30 best lawyers in Australia under 30 by Lawyer's Weekly.