Telecommunications company Davnet is continuing to infiltrate corporate buildings throughout Australia, but now has extra ammunition on board in the form of Internet service provider Magna Data.
Davnet announced last week plans to wholly acquire Magna Data for shares and some cash, valued at around $20-30 million. According to Davnet's executive director, Bill Liao, the acquisition essentially sees one of Davnet's fiercest competitors become its strongest ally.
As the only corporate-focused ISP, Magna Data's 4000 corporate clients will create new customer opportunities for Davnet, Liao said, as well as the opportunity to "wire-up" new buildings throughout Australia. Liao told Computerworld that Davnet is hoping to sign up new customers by offering cheaper rates than competing telcos Telstra and Optus.
He said the deal should be completed within 60 days, following which, it is expected Magna Data will continue operating under its current management and will retain its name.
Liao said Davnet is considering more acquisitions in areas that would support its core business of supplying communications networks building-wide.
In addition to new customers from Magna Data, Liao said Davnet is expecting more Sydney and Melbourne customers, as well as new opportunities in Perth and Brisbane.