view5G Networks Ltd

5G Networks acquires data centre in Melbourne CBD to unlock growth opportunities

The infrastructure investment will unlock significant opportunities for continued revenue growth.

cloud services
The company has a growing number of service offerings

5G Networks Ltd (ASX:5GN) has acquired Melbourne Data Centre (MDC), located in the heart of Melbourne CBD, for $5.7 million. The purchase price represents a 7x EBITDA multiple.

The new infrastructure investment will unlock significant opportunities for continued revenue growth, cost savings and operational synergies.

5GN currently spend $3.8 million per annum for data centre services from third party providers. Accordingly, $600,000 of annualised synergies are expected to be realised within the first three months.

5GN quarter by quarter cash flow performance

Currently, MDC is operating at 40% capacity. More effective data centre utilisation will be achieved through meeting existing customer demand to drive profitable revenue growth, underpinned by the considerable EBITDA returns generated by data centre services.

5G managing director Joe Demase said: “We have completed another piece of the infrastructure puzzle.

“5GN can now offer direct and managed access from our own data centre all the way through to Cloud and Managed Network services.

Revenue by product mix

“Through this growing infrastructure footprint we can manage the digital experience so that our services are easy to use and seamless for customers, all locally managed with a single point of contact through our national 24/7 service centres.

“We will now explore wholesaling the growing number of infrastructure products we can offer.”

Quick facts: 5G Networks Ltd


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Market Cap: $107.99 m

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