Australian fixed wireless operator Field Solutions to buy TasmaNet

Australian fixed wireless network operator Field Solutions Holdings Ltd. agreed to acquire IT company Tasmanet Pty. Ltd., according to an Oct. 29 announcement.

Under the share sale agreement, TasmaNet will receive an upfront consideration of A$12 million net payable in either Field Solutions shares or cash, subject to shareholder approval.

TasmaNet will also receive a deferred consideration of A$3 million, comprising an earnout of up to A$2 million that is tied to revenue for the financial year ended June 30, 2022. In addition, TasmaNet will get a A$1 million retention amount in relation to warranty claims, payable in either Field Solutions shares or cash.

Field Solutions shares are priced at 19 Australian cents per share.

Vendors comprising about A$10.3 million of the upfront and deferred consideration elected to receive 37,253,558 upfront shares worth about A$7.1 million and 9,304,946 shares worth about A$1.8 million.

If all vendors will elect to receive Field Solutions shares, a further 24,619,968 shares would be issued.

Including existing elections, the maximum number of Field Solutions shares to be issued will total to 71,258,916, comprising A$13.5 million of the upfront and deferred consideration.

Field Solutions will be retaining management and staff from TasmaNet and expand its services in Tasmania.

Meanwhile, TasmaNet will have the capability to deliver its products and services across Field Solutions' nationwide footprint.

The deal is expected to add over A$19 million in annualized revenues to Field Solutions.