Rocky boys make $100 million
MEET the 'cable guys' who've made it big.
Two former Rockhampton boys are set to cash in to the tune of about $100 million with the sale of an internet exchange business they started from scratch just seven years ago.
PIPE Networks Limited and SP Telemedia Limited have entered into a merger agreement, in which it’s proposed SPT acquires all of the outstanding shares in Pipe for $373 million.
Former North Rockhampton High School mates Bevan Slattery and Stephen Baxter, who are both directors of PIPE and together started the company, own about 27% of these shares.
PIPE’s board of directors is recommending shareholders accept SPT’s offer of $6.30 a share.
In 2005, shares were first issued to the market for 40 cents apiece.
Bevan, 38, was unavailable for comment yesterday.
It’s understood he will stay on as chief executive of the business, reportedly the seventh-fasting growing company in Australia, if the merger gets the shareholder and court okay.
It’s likely the deal will take months to finalise.
PIPE Networks runs Australia’s largest internet exchange and currently operates 1,300,000 metres of fibre optic-based network, servicing the CBDs and certain metropolitan areas of Sydney, Melbourne and Brisbane, with over 300 major commercial buildings.
The Morning Bulletin has previously reported that Bevan and Stephen decided to put their own fibre-optic cable in Brisbane after finding out the cost from a telecommunications provider to do the job for them.
In 2006, the duo were named among the richest Australians aged under 40 with a then collective estimated worth of $42 million, putting them 27th on the list.
Speaking to The Morning Bulletin in the past the down-to-earth and friendly blokes said they loved getting back home to see family in Rockhampton when they could. They said success hadn’t changed their lives.
Bevan said the key to success was hard work and persistence.
“You can have a great idea, but it comes down to hard work and persistence,” he said.
He missed friends, family and having everything five to 10 minutes away in Rocky.