Wireless broadband provider BigAir Group (ASX:BGL) has acquired Star-Tech Communications for up to $550,000 in stock.
Star-Tech is the wholesale managed ISP division of Unistar Enterprises. It primarily provides outsourced managed broadband services to university colleges and private tertiary student accommodation providers.
BigAir said it already supplies the fixed wireless services at most of Star-Tech's broadband sites, and will also service all future Star-Tech student sites.
The acquisition is expected to contribute more than $1 million in annualised revenues and $250,000 in ebitda over the 12 months following the completion of integration into BigAir.
The purchase price will be funded through the issue of $300,000 in BigAir stock initially, and up to $250,000 in additional stock - subject to the meeting of performance targets - to be paid out annually over two years.
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