Craig Wireless splashes $US5.5m on Woosh
Buys Kiwi ISP
New Zealand wireless ISP, Woosh, has been snapped up by Californian headquartered telecommunications company Craig Wireless Systems for $US5.5m.
Under the deal, Craig Wireless subsidiary Craig Wireless South will take on Woosh’s debt from investors Kuwait Finance House, New Zealand Australia Private Equity Fund, and Bridge Ltd.
Woosh chairman Rod Inglis will also take part in the acquisition by contributing $US500,000 of the total purchase price.
Following the completion of the deal, CW South will hold 51 per cent of Woosh, whilst Inglis and his affiliates will retain the remaining 49 per cent of the company’s equity. Original stakeholders Clarity Partners, Todd Wireless and Vodafone New Zealand will not be part of the new shareholding structure.
Craig Wireless said in a statement (PDF) that after the closing of the acquisition, all of the remaining assets, business and employees of Woosh will be transferred to CW South.
The newly formed company will continue to operate the Woosh business with Inglis taking on a management role in the business. "Upon completion of the transaction and realization upon the Advances, Craig expects that it will have expanded its spectrum holdings, have organized an operating wireless business that it believes is well positioned in the New Zealand market and recognize revenue and have in place an experienced and effective management team, ” said Boyd Craig, CEO of Craig Wireless.
The New Zealand acquisition expands the CWS Group’s international footprint. Craig Wireless holds or leases licenses for spectrum in Southern California, United States, Norway and in Greece.
The company had a significant windfall earlier this year after selling its Canadian spectrum assets for $US20.5m. ®