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Spirit Technology Solutions Ltd. ( (AU:ITS) ) has shared an update.
Infotrust Ltd has agreed to sell its Cloud & Communications segment, Nexgen Investment Group, to Aussie Broadband for up to $50 million in cash and contingent consideration, in a move that completes its strategic pivot to a focused cyber security and secure managed technology business. The deal, which follows Nexgen’s FY25 revenue of $44.1 million and uEBITDA of $7.7 million, will see Infotrust provide 12 months of transitional services while using the proceeds to reduce net debt, fund earnings-accretive acquisitions in higher-margin cyber-first service lines and strengthen its balance sheet, prompting the withdrawal of FY26 earnings guidance pending a refreshed outlook.
Management says the divestment will simplify the group, sharpen its focus on core cyber offerings and enable it to progress a mature pipeline of strategic acquisitions without raising additional capital, even though Group EBITDA will fall on a standalone basis after the sale. The board remains confident the transaction aligns with Infotrust’s long-term strategy to become Australia’s leading cyber security provider and plans to issue updated financial guidance once the impact of the divestment and prospective acquisitions on ongoing operations is fully assessed.
The most recent analyst rating on (AU:ITS) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.
More about Spirit Technology Solutions Ltd.
Infotrust Ltd is an Australian cyber-first technology services provider focused on delivering managed security services, security operations centre capabilities, digital forensics and incident response, and governance, risk and compliance solutions. The company also offers secure managed technology services such as secure workplace, network operations, cloud infrastructure, identity management and data governance, targeting government, enterprise and mid-market customers.
Average Trading Volume: 32,098
Technical Sentiment Signal: Strong Sell
Current Market Cap: A$78.92M
See more insights into ITS stock on TipRanks’ Stock Analysis page.