Amcom purchases L7 Solutions for $15m

Amcom purchases L7 Solutions for $15m

Summary: Amcom Telecommunications has purchased IT company L7 Solutions for $15 million.

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TOPICS: Broadband, Cloud, NBN
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Amcom Telecommunications has purchased IT services firm L7 Solutions for $15 million.

Amcom CEO Clive Stein said that the acquisition was an investment in the longer-term growth of the company.

Amcom already has fibre and hosted IP telephony infrastructure, as well as three datacentres in operation. L7's IT skills base is expected to complement these operations and help expand Amcom's cloud product.

"The L7 business has an extensive skills capability that will enable us to accelerate our recently launched cloud offering. There are significant cross-selling opportunities into our existing 900 corporate and government customer base," Stein said.

"For [the 2013 financial year], we expect the business to deliver at least $4 million in EBITDA, the first full financial year as part of the group," said Stein.

L7 employs 130 staff and has 200 clients across enterprise and government. It generated revenue of $40 million in the 2011 financial year.

The acquisition has been mostly funded by debt, with net debt now standing at $18 million post-acquisition.

Amcom recently scored a $9 million deal with the University of Western Australia, providing it with infrastructure-as-a-service cloud services and reported a 50 per cent jump in profit.

Topics: Broadband, Cloud, NBN

Michael Lee

About Michael Lee

A Sydney, Australia-based journalist, Michael Lee covers a gamut of news in the technology space including information security, state Government initiatives, and local startups.

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