Australian telecommunications carrier 5G Networks (5GN) is buying Intergrid Group Pty Ltd in an AU$3 million deal. The purchase will significantly boost 5GN’s wholesale cloud offerings. 5GN is funding the buy via a combination of cash and shares.
Intergrid is well-known for its bare metal servers – servers that host a single tenant. The deal represents a valuable opportunity for ASX listed 5GN to expand its digital infrastructure capabilities.
“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,” says 5GN’s Managing Director, Joe Demase.
The Intergrid deal is the latest in a series of mergers and acquisitions at 5GN. The telco is keen to step up its wholesale cloud offering as it chases further market share. Mr Demase notes Intergrid’s corporate and government sector client base offers 5GN the chance to do just that.
“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.”
Intergrid’s has a dedicated network of lower latency cloud servers located across seven major cities in Australia and New Zealand. Bringing Intergrid into the fold at 5GN increases the telco’s ability to deliver high-speed data transmission services.
The Intergrid network currently connects over 40 data centres around the region, enabling optimal speed and web content delivery. Right now, that network can reach most of the Australian population in under 20 milliseconds.
Intergrid’s cloud supports high-speed streaming to households, power Ag-Tech Internet of Things devices on farms, support critical government applications and everything in between.
5GN says the purchase will help meet the growing demand for edge computing across Australia and New Zealand. They say it will add value to their client’s content or application experience. The Intergrid deal will also help speed up the infrastructure rollout to 5GN’s own Australian data centre services. The telco expects to complete its fibre rollout to over 80 Australian data centres by the end of 2021.
