5G Networks (ASX:5GN) is pleased to announce the $5.7m acquisition of Melbourne Data Centre (MDC), located in the heart of Melbourne CBD. The purchase price represents a 7x EBITDA multiple.
This infrastructure investment will unlock significant opportunities for continued revenue growth, cost savings and operational synergies. 5GN currently spend $3.8m pa in data centre services from third party providers. Accordingly, $600k of annualised synergies are expected to be realised within the first 3 months.
5G Networks Managing Director, Joe Demase stated;
“We have completed another piece of the infrastructure puzzle today. 5GN can now offer direct and managed access from our own data centre all the way through to Cloud and Managed Network services. Through this growing infrastructure footprint we can manage the digital experience so that our services are easy to use and seamless for customers, all locally managed with a single point of contact through our national 24/7 service centres. We will now explore wholesaling the growing number of infrastructure products we can offer. “
Coupled with the recent launch of the National high-speed data network, this acquisition is an integral addition to the Company’s infrastructure investment, which augments the aggressive growth and acquisition strategy of 5G Networks.