Perth telco and IT provider Swift Networks spends millions to acquire VOD and Movie Source


Perth-based telecommunications and managed IT services provider Swift Networks has acquired video-on-demand services provider VOD.
Swift will pay $5.1 million in cash and 3.6 million of its shares to acquire VOD and its parent, company Movie Source.
Based in Sydney, VOD provides video services to more than 26,000 accommodation rooms in Australia, New Zealand and the South Pacific Islands.
Swift spruiked a number of benefits from the acquisition in addition to $3.75 million in annual revenue in the 2017 financial year.
VOD will bring over long-standing contracts with Accor Hotels and InterContinental Hotels, as well as strategic partnerships with systems integrators, Telstra, Blue Sky, Iglu and Triple Play.
Swift will also grow its number of sites from 152 to 254, and an additional 20,000 rooms in its target markets of hospitality, aged care and resources.
Swift chief executive Xavier Kris said VOD’s business would be integrated into Swift to grow its service offering to accommodation providers across Australia.
“The transaction reduces our content costs and accelerates the strategic plan for vertical and geographical expansion that Swift has outlined consistently since listing on the ASX,” Kris said.
“We are excited to leverage VOD’s strength in the hospitality sector to enable the combined business to become the dominant player in this vertical.”
Swift is an ASX-listed firm that provides telecommunications and managed services to accommodation providers, as well as wi-fi and video-on-demand services.