Tempo Australia Ltd (ASX:TPP) has acquired Comsite Services, a telecommunications maintenance services company generating $4-5 million revenue per annum.
It conducts full end-to-end services on the mobile network infrastructure across regional New South Wales, ACT and southern Queensland.
It does this on behalf of major global telco companies such as Vodafone and Optus.
Synergies with existing business
Tempo’s managing director and CEO Ian Lynass said: “Comsite is a business that is complimentary with Tempo’s strategy to continue its development of asset management contracts generating long term annuity earnings, in low risk activities.
“Comsite provides strong synergies with Tempo and will easily bolt on to the existing KP Electric maintenance business acquired last year.
“We expect to capture strong growth opportunities with this additional capability as the industry starts to roll out its 5G networks.”
Acquisition price subject to performance
Total considerations is subject to the acquired business meeting strict performance targets over three years but is expected to be in the range of $3-4 million across three years.
The acquisition of Comsite is expected to be EPS accretive from the first year.
The acquisition is subject to the satisfaction of a condition precedent that the customer contracts are transferred to Tempo for which discussions are well advanced.
A construction and maintenance services company
Tempo is a construction and maintenance services company to the resources, energy, commercial, industrial and telecommunications sectors with 14 offices and depots across Australia.
The company was established in 2011 and has specific expertise in structural, mechanical, piping, electrical, telecom and data communications.