Leading IT and Broadband products distributor Quadtel Limited (ASX:QTL), today announced that the company has signed an agreement for the acquisition of one of Australia's leading Voice and Data services company Intellink Pty Ltd, subject to final due diligence and warranty completion.
The acquisition will provide the following benefits to Quadtel:
* It will allow Quadtel to access Intellink's strong customer base and reseller partners. This access will enable further cross selling opportunities and broaden the existing distribution channel.
* Intellink have an expert understanding of the voice market and combined with the knowledge QTL possess of the Data market, QTL will be able to take forward a unique Voice/Data offering and fulfil a number of vendor partners stated potential. The combined effect of Intellink's voice/data expertise and Quadtel's large distribution network, means the Company will be in a much stronger position to exploit the rapid growth in the emerging voice/data convergence market.
* QTL will now be able to offer a Quality Endorsed technical support resource to our existing and future customers. QTL will immediately utilise this infrastructure for existing vendor product agreements and leverage it to attract new vendors and negotiate more favourable terms and conditions.
* Intellink has proven skills the rapidly expanding broadband microwave market and has an increasing number of quality maintenance agreements in place with Government, Semi Government and major enterprise organisations. This provides Quadtel with a recurring revenue base and solid platform to build superior and sustainable results for shareholders.
Intellink will turn over in excess of $5 million dollars in the 2002/03 financial year with significant growth expected over the coming years. EBIT is forecast at 8-9%, and is expected to improve year on year with savings from synergies between the two organisations.
Quadtel believe that Intellink will supplement the existing distribution business by offering a services arm to the group. The wealth of expertise in the two organisations will provide a powerful force in the emerging and lucrative broadband telecommunications market. This coupled with the corporate expertise and management of Quadtel Limited sets the scene for a very dynamic and exciting future.
"Going forward, QTL are always looking for alternative sales channels outside of the traditional areas. QTL believe that Intellink will provide QTL the infrastructure and immediate opportunities to ensure we are driving our products to their maximum potential. Intellink will deliver QTL a ready made SME channel which QTL will further expand over the coming years," said Rodney Orrock CEO of Quadtel Limited.
Simon Hokin General Manager of Intellink said today the acquisition presented an enormous opportunity for Intellink to grow from its existing base. "Given the dominant position that Quadtel holds in the Broadband market and their strong relationships in retail it is an enormous opportunity for Intellink to grow from our existing base. QTL will provide direction, Vendor opportunities and more importantly a clearly defined structure for Intellink to teach its fall potential. We are all very excited at the opportunity being presented and look forward to the finalisation of contracts and becoming part of the Quadtel group of companies and what we believe is a very exciting corporate strategy."
Quadtel have placed 11,250,000 shares at $0.04 to fund the acquisition through London Partners Pty Ltd.
For Further Information contact:
Denis Orrock - 8852 4600
For move information visit www.quadtel.com or phone Quadtel's head office in Sydney on +61 2 8852 4600
QTL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
