SINGAPORE -- SGX-Catalist listed DeClout Limited (“DeClout” or the “Company”, and together with its subsidiaries, the “Group”) has signed a deal with Pacnet Internet (S) Pte Ltd (“Pacnet Internet Singapore”), a subsidiary of Telstra Corporation Limited (“Telstra”), Australia’s leading telecommunications company, to acquire certain Internet Service Provider (“ISP”) assets and business in Singapore and Thailand from Pacnet Internet Singapore (the “Proposed Acquisition”).
Under the terms of the Proposed Acquisition, DeClout’s subsidiary, Acclivis Technologies and Solutions Pte. Ltd (“Acclivis”) will, through its subsidiary, OSINet Communications Pte Ltd (“OSINet”), acquire certain assets (including “Pacific Internet” trade marks in Singapore) of the ISP business carried on by Pacnet Internet Singapore for US$2.3 million (the “Singapore Transaction”). At the same time, DeClout’s indirect subsidiary, Acclivis Technologies (Thailand) Limited, will acquire the entire share capital of Pacnet Internet Thailand Limited (“Pacnet Internet Thailand”) for US$2.1 million. Both the Singapore and Thailand businesses are focused on providing ISP services to small and medium sized businesses.
Completion of the Singapore Transaction is subject to regulatory approval from the Infocomm Development Authority of Singapore. Upon the completion of the Proposed Acquisition, the acquired assets will be merged with Acclivis’ existing ISP business, OSINet, and together, be rebranded as Pacific Internet, allowing Acclivis to broaden its offerings and achieve further economies of scale in the ISP segment.
The Proposed Acquisition is also expected to be earnings accretive and to bring in more than 3,000 customers. Pacnet Internet Singapore and Pacnet Internet Thailand posted approximately S$20 million in combined revenue (based on unaudited management accounts) for the financial year ended 31 December 2014.
Telstra Corp. Ltd. (ASX: TLS; NZK: TLS)