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Aussie Broadband (ASX: ABB) confirms acquisition negotiations with Over The Wire (ASX: OTW) – The Market Herald

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  • In response to an Australian article, Australia’s Broadband (ABB) confirmed that it was discussing a potential acquisition with Over The Wire (OTW).
  • Australian broadband said the discussion was “preliminary and incomplete” and no agreement had been reached yet.
  • The company recently raised $ 134 million in two separate rounds of funding. It is said to be partially used for “additional acquisition opportunities”.
  • Australian broadband stocks rose 513% to close at $ 4.92, and Over The Wire closed while dealing with “media speculation.”

In response to an Australian article, Australia’s Broadband (ABB) confirmed that it was discussing a potential acquisition with Over The Wire (OTW).

The article, published late Thursday, is currently in “exclusive discussion” as a newly listed telecommunications provider is considering the possibility of acquiring Over The Wire earlier this year, according to unnamed sources. Claimed to be.

“The discussions are preliminary and incomplete and no agreement has been reached on any transaction,” Australia’s Broadband said in a statement this morning.

“There is no guarantee that an agreement will be reached or a transaction will occur.”

Broadband in Australia went public in mid-October last year for $ 1 per share, raising $ 40 million and having a market capitalization of $ 190 million. In the next 12 months, the company’s stock surged to just under $ 5 and was valued at about $ 1.1 billion.

In a market update earlier this week, Australian broadband mentioned the completion of institutional placement. Raised $ 114 million, And its share purchase plan Raise another $ 20 million..

In addition to increasing new business product and technology development, the company said the funds would also be used for “additional acquisition opportunities,” adding that it continued to “advance its M & A strategy” in the same announcement.

Over The Wire, meanwhile, went public in early December 2015 for $ 1 per share, raising $ 10 million in the process. Stock prices have risen as well, with the last trading at $ 5 before the suspension today, while responding to the current “media speculation”.

Over The Wire, a provider of a variety of communications, cloud and IT solutions, saw revenues increase 29% from $ 87.6 million in fiscal year 2020 to $ 112.7 million, according to full-year results released in August.

The company focused on the acquisition of Zintel, Fonebox and Digital Sense this year, but did not mention future M & A strategies. Instead, Managing Director Michael Omeros simply said that Over The Wire has “people, solutions and platforms to achieve strong organic growth this year.”

Aussie Broadband shares rose 5.13% to close at $ 4.92.



Aussie Broadband (ASX: ABB) confirms acquisition negotiations with Over The Wire (ASX: OTW) – The Market Herald

Source link Aussie Broadband (ASX: ABB) confirms acquisition negotiations with Over The Wire (ASX: OTW) – The Market Herald

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