ASX-listed telco services provider 5G Networks has acquired bare metal cloud provider Intergrid for $3 million.
Based in Sydney, Intergrid specialises in bare metal servers, or dedicated hardware that hosts only a single tenant at a time. It also offers cloud servers, colocation, IP transit and other services, and has operations in seven major cities across Australia and New Zealand.
5GN said the acquisition would “further strengthen” its wholesale cloud offerings, with its customers and partners now able to avail of bare metal servers.
The company added that assets acquired from Intergrid would also accelerate its infrastructure rollout to Australian data centres, which is expected to complete later this year.
“5GN are really excited to be working with Intergrid in growing our digital infrastructure capabilities. In a very short period they have developed a valuable customer base with many blue-chip ASX 200 and government customers who are committed to pursuing a cloud experience which is unique and world class,” 5G Networks managing director Joe Demase said.
“The capability for 5GN to now offer bare metal services at the edge, means that we can deliver dedicated cloud or hosting solutions pretty much to the front door of every major organisation in Australia. This enables content and application performances which are absolutely best in market.”
The $3 million price tag comprises $2.5 million in cash and $500,000 in 5GN shares. 5GN expects Intergrid will contribute $2.5 million in annual revenue and $800,000 in EBITDA.
Intergrid is 5GN’s first acquisition of 2021 following a busy 2020 headlined by the acquisitions of hosting provider Webcentral and a number of data centres.