Destra acquires communication services provider Techex
Announcement posted by Destra Corporation 08 Oct 2004
Complements Destras advanced web hosting services and offers customers a full range of services with a single point of contact and a single bill
Destra Corporation Limited (ASX:DES) has announced the acquisition of communication services provider Techex Communications Pty Ltd (Techex). Techex predominantly provides business grade data communication services, a complementary business offering to Destras existing web hosting services.
Destra acquires communication services provider Techex Page 3 of 3
The data communication services supplied by Techex are complementary to the hosting and domain registration services provided by Destra, allowing us to offer a one stop shop solution to our expanding client base, said Domenic Carosa, Destras CEO. This acquisition is an important step in Destras broader strategy to increase its total business solutions, breadth of product offering and growth in business customer numbers.
Techex had revenues of around $4.5 million for FY04, with normalised EBIT profit of over $700,000. The purchase consideration includes a first tranche payment of $1.5 million composed of $1.2 million in Destra shares and $300,000 cash. Subsequent payments are to be made after a 12 month earn-out period. Voluntary escrow arrangements have been agreed by Techex shareholders.
Destra is on target to generate profit for the current financial year and the Techex acquisition should bring additional profitability to the organisation. Destra recorded revenues of $9.1 million for the FY04.
The majority of Techexs communication services is delivered to businesses and government agencies throughout Australia via its national reseller channel of 130 ISPs, system integrators and value added resellers. Both organisations are committed to their channel partnerships and the enhanced product range and geographic coverage will add value to these strong partnerships, added Carosa.
Synergies between Destras enterprise web hosting division (OzHosting.com Advanced) and Techex offer cross selling opportunities. The deal enables each company to leverage its respective product offerings to its existing customer base in order to maximise revenue growth and profitability as well as delivering cost savings from economies of scale. 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.
Our union with Destra complements our market offering with best of breed hosting, server co-location and domain registration services, said Chris Collinge, Techex Managing Director. We will now be able to offer our customers a full range of services with a single point of contact and a single bill. In an increasingly complex business environment, we believe this is the future of service provision in Australia, and that Destra will be right at the forefront."
Late September saw the company announce an agreement with Harvey Norman (ASX:HVN) to provide online music through the specialised website, www.musicandgames.com.au and a further agreement to enable People Telecoms residentially focused Swift broadband service division to allow customers to acquire and download music 24 hours a day via an interconnect agreement with Destra the service is branded Swiftmusic.
About Destra Corporation Limited
Destra (ASX:DES) is a leading internet and e-commerce company delivering internet business and consumer entertainment solutions. Destras strategy is focused on high growth internet hosting and digital media markets and the development of proprietary intellectual property.
SME and corporate enterprise offerings are delivered through the following divisions OzHosting.com, OzHostingAdvanced, TPP Internet, creditcheck.com.au
For more information visit www.destra.com.
About Techex Communications Pty Ltd
Founded in 1996, Techex is a communication services organisation whose range of solutions encompasses broadband over DSL, fibre, wireless and ATM and supports high quality voice calls, VPN and internet access through a common connection. The companys complete end-to-end managed services include connection, router and firewall management and monitoring.
Techex has consistently won awards for quality, service and innovation. The company was the first Request Broadband (now Powertel) Platinum partner award winner and is one of only a handful of Platinum partners.
For more information, visit www.techex.com.au.
Destra acquires communication services provider Techex Page 3 of 3
The data communication services supplied by Techex are complementary to the hosting and domain registration services provided by Destra, allowing us to offer a one stop shop solution to our expanding client base, said Domenic Carosa, Destras CEO. This acquisition is an important step in Destras broader strategy to increase its total business solutions, breadth of product offering and growth in business customer numbers.
Techex had revenues of around $4.5 million for FY04, with normalised EBIT profit of over $700,000. The purchase consideration includes a first tranche payment of $1.5 million composed of $1.2 million in Destra shares and $300,000 cash. Subsequent payments are to be made after a 12 month earn-out period. Voluntary escrow arrangements have been agreed by Techex shareholders.
Destra is on target to generate profit for the current financial year and the Techex acquisition should bring additional profitability to the organisation. Destra recorded revenues of $9.1 million for the FY04.
The majority of Techexs communication services is delivered to businesses and government agencies throughout Australia via its national reseller channel of 130 ISPs, system integrators and value added resellers. Both organisations are committed to their channel partnerships and the enhanced product range and geographic coverage will add value to these strong partnerships, added Carosa.
Synergies between Destras enterprise web hosting division (OzHosting.com Advanced) and Techex offer cross selling opportunities. The deal enables each company to leverage its respective product offerings to its existing customer base in order to maximise revenue growth and profitability as well as delivering cost savings from economies of scale. 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.
Our union with Destra complements our market offering with best of breed hosting, server co-location and domain registration services, said Chris Collinge, Techex Managing Director. We will now be able to offer our customers a full range of services with a single point of contact and a single bill. In an increasingly complex business environment, we believe this is the future of service provision in Australia, and that Destra will be right at the forefront."
Late September saw the company announce an agreement with Harvey Norman (ASX:HVN) to provide online music through the specialised website, www.musicandgames.com.au and a further agreement to enable People Telecoms residentially focused Swift broadband service division to allow customers to acquire and download music 24 hours a day via an interconnect agreement with Destra the service is branded Swiftmusic.
About Destra Corporation Limited
Destra (ASX:DES) is a leading internet and e-commerce company delivering internet business and consumer entertainment solutions. Destras strategy is focused on high growth internet hosting and digital media markets and the development of proprietary intellectual property.
SME and corporate enterprise offerings are delivered through the following divisions OzHosting.com, OzHostingAdvanced, TPP Internet, creditcheck.com.au
For more information visit www.destra.com.
About Techex Communications Pty Ltd
Founded in 1996, Techex is a communication services organisation whose range of solutions encompasses broadband over DSL, fibre, wireless and ATM and supports high quality voice calls, VPN and internet access through a common connection. The companys complete end-to-end managed services include connection, router and firewall management and monitoring.
Techex has consistently won awards for quality, service and innovation. The company was the first Request Broadband (now Powertel) Platinum partner award winner and is one of only a handful of Platinum partners.
For more information, visit www.techex.com.au.