Destra buys Veritel DSL business customers

Destra Corporation has bought 350 Veritel DSL business broadband customers in a move that it claims will boost revenue by $500,000.

The bid was made via the Web hosting company's subsidiary, Techex, which it acquired in October.

Destra CEO, Domenic Carnosa, said the acquisition offered vertical opportunities for its other businesses, which include shared hosting for small medium enterprises, high-end web hosting services for larger customers and domain registration services.

He described the business as consisting of a small number of high dollar value customers.

"Acquiring another business DSL customer base and then integrating them into our existing infrastructure just made a lot of commercial sense for us," he said.

Veritel Australia managing director, Ivan Hurwitz, said the buy out meant it could focus on core parts of its business.

"With Veritel increasingly focusing on becoming a dominant supplier of wireless services, we felt that our DSL customers would benefit from the services offered by a company which has successfully been providing and supporting the broadband needs of business customers," he said.

The majority of the acquired customers had been seamlessly integrated in the last 30 days, Carosa said.

The Veritel acquisition is part of an aggressive strategy that has seen Destra purchase 18 companies in four years.

Carosa said acquisitions were a strong contributor to the 60 per cent growth recorded across the company last year.

"We announced our maiden net profit last quarter and we are continuing to make acquisitions in the space we compete in," he said.

The company said it was not chasing the consumer market but instead was focusing on high value revenue streams in the SMB sector through its large reseller base.

Destra was now reviewing its 1000 strong reseller channel and expected to make some announcements in the new year, Carosa said.

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