LISTED satellite and computer technology firm Comdek is looking to capitalise on the corporate data reticulation market through strategic acquisitions and by growing its satellite business.
![](https://static.businessnews.com.au/sites/all/themes/bn2020/images/squares.gif)
![Comdek’s growth aim](https://static.businessnews.com.au/sites/default/files/default_images/default-article-image_1440x960_0.jpg)
LISTED satellite and computer technology firm Comdek is looking to capitalise on the corporate data reticulation market through strategic acquisitions and by growing its satellite business.
West Perth-based Comdek, which listed on the Australian Stock Exchange in October last year, completed the first of what the company hopes will be several strategic acquisitions last month when it bought another Perth-based firm Vianet.
Comdek managing director Hadyn Collins said the company was now on the lookout for other suitable acquisitions that would add to its core data reticulation business.
“We are looking at extending our presence in the satellite market space,” he said.
“There are a lot of opportunities but they have to fit our criteria that compliment where we sit in the market.
“That is, profitable, established businesses in both the satellite and corporate data area.
“There are many areas in Australia that will never have terrestrial broadband.”
In announcing the acquisition of Vianet to the market, Comdek said the deal would pro-vide “the opportunity to expand and enhance services to a significantly larger market”.
“The acquisition adds to the recurring revenue business of satellite data reticulation by adding a national terrestrial data reticulation business with significant cost savings and additional revenue opportunities to be realised in the future in addition to the existing underlying profitability of both companies.”
Comdek paid $385,500 and a convertible note for Vianet, with the note convertible into 7.55 million shares by March 2006. The deal is conditional on Vianet achieving earnings before interest, tax, depreciation and amortisation of $350,000 for the year to June 30.
While Vianet has grown by 40 per cent in the past year and has annualised revenues of $3.4 million, it had advertised its ISP business for sale in February 2002.
In March 2003, Vianet merged with web developer AIP Media. The newly merged firm later lost out in an attempt to buy multimedia firm Pretzel Logic out of administration to Nedlands-based PIVoD technologies.
Comdek raised $4 million last year and listed on the ASX on October 31 2003 with the key purpose of raising funds to upgrade and expand its satellite communications service. Its satellite communications service supplies telephony, data, fax, EFTPOS and Internet to remote sites with the provision of satellite infrastructure.
According to the company’s half year report, revenue from Comdek’s satellite communication services now exceeds 32 per cent of core revenues with the company adding six new satellite sites with companies such as Rio Tinto and upgrading services with several existing customers.
Prior to listing, the company also listed Sons of Gwalia, Fluor, MacMahon and BHP Billiton as satellite communications clients.
“The listing certainly gave us that opportunity to expand more than organically,” Mr Collins said.
Mr Collins said the market was yet to catch up to Comdek’s product and service offerings.
“I think Comdek is undervalued,” he said.
After listing at 18 cents, Comdek’s share price fell to around 13 cents. It lifted 2 cents to 15 cents on news of the Vianet deal and was around 16.5 cents earlier this week.