“This is an EPS positive acquisition and we expect a return on our cash investment to be less than 12 months,” said Domenic Carosa, destra’s CEO. GPM had revenues of $ 1.7 million for FY04/05. The purchase consideration is up to $600,000 and includes payment of up to $360,000 cash and $240,000 destra shares.
MELBOURNE – 15th July, 2005 – destra Corporation Limited (ASX:DES) has announced the acquisition of business internet services provider GPM Internet Pty Ltd (GPM). The company predominantly provides business grade broadband, hosting, VPNs and wireless networks to small and medium size corporate customers.
“This is an EPS positive acquisition and we expect a return on our cash investment to be less than 12 months,” said Domenic Carosa, destra’s CEO. GPM had revenues of $ 1.7 million for FY04/05. The purchase consideration is up to $600,000 and includes payment of up to $360,000 cash and $240,000 destra shares.
destra is on target to generate a Net Profit well in excess of $1.2 million for the current 05/06 financial year with a full year gross margin contribution from GPM of circa $500,000, once integrated.
“This acquisition is in line with our growth strategy and complements our destra Business division which focuses on end-to-end managed data and hosting services for the SME and corporate markets,”. Said Carosa.
“GPM was established in response to the clear demand for quality internet access and hosting solutions for small and medium sized enterprises,” said George Nikolaidis, GPM’s founder and Managing Director. “This is an exciting time in our history as we combine our technical expertise and quality of service in access technology with the offerings that destra takes to the market.”
Synergies exist between GPM and the destra Business division and allows leveraging of the additional destra Business product offerings to GPM’s existing customer base.
Operational cost savings will result with the merger of the two offices as well as integration of some of the back office functions and sharing of bandwidth costs.
Carosa concluded that destra continues to explore complementary national business opportunities as part of the company’s growth strategy.