5G Acquires MDC
Last month, Cornwalls’ acted for 5G Networks Limited (ASX: 5GN) on its acquisition of the business and assets of Melbourne Data Centre Pty Ltd.
The transaction was led by Michael Wilton, Partner in our Corporate & Commercial M&A team, and assisted by Emily Sahhar, Corporate & Commercial M&A Lawyer. The team worked diligently to achieve another great result for this rapidly expanding company.
Listed in 2017, 5GN is a Melbourne based telecommunications company that currently owns and operates its own national high-speed data network across Australia and offers its customers a range of services including managed IT services and managed cloud and data centre solutions.
The acquisition will assist 5GN to internally integrate its data centre services, for which it currently pays $3.8m a year to third-party providers. 5GN said that the acquisition will help to achieve cost synergies of $600k in the first three months of MDC operations. The data centre is centrally located at a prominent Melbourne site in Collins Street.
The purchase price for the acquisition was $5.7m comprising $1m cash on completion, the issue of $1.75m of 5GN shares to the vendor Melbourne Data Centre Pty Ltd, a first year payment of $550k and second and third year payments of $1.250m and $1.15m respectively.
The trading price of shares in 5GN have more than doubled since February of this year and we’re excited to see where this dynamic company goes next.