Wireless-broadband specialist BigAir has acquired Allegro Networks in an effort to bolster its position in the corporate fixed-wireless and tertiary student accommodation internet markets.
BigAir is paying $7.5 million, plus a sum of up to $3 million, depending on Allegro's revenue for the 2013 financial year — which is expected to be between $5 and $6 million. For the $3 million to be payable, student revenue has to exceed $2.2 million and non-student revenue has to exceed $3.3 million in the financial year.
Allegro is a Queensland-based carrier, founded in 2005, with its own fixed-wireless network providing coverage from the Gold Coast through to Brisbane and the Sunshine Coast. It has been expanding its networks into Gladstone and Mackay. It also has a block of 3.5GHz spectrum.
BigAir said that Allegro's corporate customers and spectrum assets will complement its national network and funding ability, which will lead to expanded service offerings and network coverage.
Allegro currently services over 60 student sites, with 8000 student beds. Adding BigAir's student reach will bring the number serviced by the combined companies up to 27,000.
BigAir has been on the acquisition path of late, having also bought Access Plus and Clever Communications within the last two years. The integration of Clever Communications is now largely complete, after relocating Clever Communications' headquarters and datacentre, according to BigAir. The companies' wireless-network integration is nearing completion.
Allegro managing director David Waldie will remain with the company.