Information technology firm DeClout is proposing to buy the Internet service provider (ISP) assets and business in Singapore and Thailand from Pacnet Internet Singapore for US$4.4 million (S$6.3 million) in total.
In a statement yesterday, Singapore-listed DeClout said the move would expand the firm's regional reach across South-east Asia, and boost its infrastructure and Internet network connectivity services.
DeClout, with businesses in IT infrastructure and cloud computing, is listed on the Singapore Exchange's second board Catalist.
It said the deal would also allow it to cross-sell the group's different IT and telecommunications products to a wider customer base.
Pacnet is a subsidiary of Telstra Corporation, Australia's leading telecommunications company.
Under the proposed deal, DeClout's subsidiary Acclivis Technologies and Solutions will, through its subsidiary, OSINet Communications, acquire certain assets, including Pacific Internet trademarks here.
At the same time, DeClout's indirect subsidiary Acclivis Technologies (Thailand) will acquire the entire share capital of Pacnet Internet Thailand for US$2.1 million.
Both the Singapore and Thailand businesses are focused on providing ISP services to small and medium-sized businesses.
The two businesses posted about $20 million in combined revenue for the financial year ended Dec 31 last year.
Completion of the Singapore transaction is subject to regulatory approval from the Infocomm Development Authority of Singapore.
Upon the completion of deal, the assets would be merged with Acclivis' existing ISP business, OSINet, and together, be rebranded as Pacific Internet. The deal is expected to boost earnings and bring in more than 3,000 customers.
Acclivis chief executive Marcus Cheng said: "The proposed acquisition enables Acclivis to offer a one-stop regional ICT service to our enterprise customers..."
The deal would also allow Acclivis to become a licensed operator in Thailand with the relevant ISP and telco business licences to expand its cloud business there.