Monday, 25 October 2021 09:02

DGtek to acquire consumer infrastructure division of telco Spirit Technology Solution for $5.1m

DGtek CEO David Klizhov DGtek CEO David Klizhov

DGtek, an independent provider of ultra fast, full-fibre broadband internet services, has announced it will be acquiring the consumer infrastructure business of Spirit Technology Solution (“Spirit”), an ASX-listed telecommunications company.

DGtek says the acquisition materially increases DGtek’s footprint and number of connections, and will help accelerate its fibre rollout across Melbourne, Geelong, Brisbane and the Gold Coast. The deal firmly establishes DGtek as Australia’s third largest full fibre operator and a real alternative to NBN, the company proclaims.

Spirit's consumer infrastructure business provides high speed internet to residential customers in multi-unit buildings in Melbourne, Geelong, Brisbane and the Gold Coast. The divestment from Spirit is in line with its stated strategy to focus on sales to the business market segment. Transitionary arrangements agreed with Spirit will ensure there is no disruption to service and existing customers whilst the network is fully migrated to the DGtek platform, the company said.

DGtek says the acquisition provides immediate financial and operational scale, as well as the opportunity to upgrade Spirit's customers to a full fibre service. The majority of Spirit’s residential customers are within or near the existing DGtek footprint, and plans are in place for an accelerated network rollout and upgrade to FTTP for the vast majority of customers within the next 6 months.

DGtek CEO David Klizhov said, “DGtek is very excited to acquire Spirit’s consumer business and, through our resellers, will be able to provide Spirit’s customers with a best-in-class internet service.

“The current environment has highlighted more than ever the need for gigabit capable fibre broadband to be available as standard, and we are pleased to be able to accelerate this rollout to include all Spirit customers. More Australians will soon be enjoying full fibre connections, meaning affordable, fast, low latency and reliable broadband.”

The acquisition further expands its reach throughout Melbourne and also provides an entry to interstate expansion, particularly in SE Queensland, putting it well on its way to reach its target of 1 million homes passed by 2024, DGtek said.

It is the second acquisition for DGtek this year, following the acquisition of FG Telecom , a fibre network company serving business customers in and around Port Melbourne and the Melbourne CBD, which expanded the company’s network coverage by over 25 per cent.

This first appeared in the subscription newsletter CommsWire on 18 October 2021.

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A versatile technology executive with extensive experience in most disciplines and technologies in the Information and Communications Technologies sector. Roles have encompassed general management, product management, business development, sales management, industry marketing, operations management, research and development, business case development, market research and forecasting, regulatory, strategy management, solution development, major project construction, process design and management, technology and management consulting, and engineering.

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