Data#3 takes majority stake in Discovery Technology
Data#3 has exercised its option to acquire another 14.2 percent shareholding in Wi-Fi analytics company Discovery Technology for AU$500,000.
The acquisition came after Data#3 bought an initial 42.5 percent stake in the company mid last year. Data#3 now holds a majority stake in the Wi-Fi firm.
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Data#3 CEO Laurence Baynham said the company has been pleased with how Discovery Technology has progressed over the last year, and believes that exercising the option is in the best interest of Data#3 shareholders.
"The Wi-Fi sector remains very active, with opportunities that have been in the pipeline for some time now coming to fruition," he said.
Following the exercise of this option, Data#3 retains a further option to acquire the balance of the shares in the company at market price by June 30, 2017.
Data#3 chairman Richard Anderson said that having made the decision to exercise the option, the company plans to fund the additional investment from cash flow, reassuring that it would not impact shareholder dividends.
"In view of the further investment, Data#3 will be increasing its involvement in the management of Discovery Technology," he said.
Anderson added that John Grant, former Data#3 CEO, will remain as chairman of Discovery Technology.
Data#3 has been a reseller of Discovery Technology's Wi-Fi analytics platform since its launch in 2013.