Australia : MYNEXTFONE declares its plans on acquisition CONNEXUS for $4.75m in cash [TendersInfo (India)]
(TendersInfo (India) Via Acquire Media NewsEdge) MyNetFone (MNF), the telecom firm of Australia, has declared that it has decided to acquire Connexus for $4.75 million in cash.
The Melbourne-based Internet Service Provider (ISP) Connexus has been in business for over 23 years now, which is focused in offering data communications to small and medium enterprise (SME) clients. The Australian company has an employee fleet of 15 people.
MyNetFone (MNF) has announced that its purchase will be backed, partly, via a share placement to institutional and high-level investors worth $3m, through issuance of 4,167,000 shares at $0.72, while the residual $1.75m will be supported from free cash flow.
The MNF Board hopes that the purchase of Connexus will add gross revenue of $5.2m a year, about $1.6m to its before-tax profit over the coming one-year period, and more than $2.1m in EBITDA (earnings before interest, taxes, depreciation and amortisation) per annum following combination.
A statement has revealed that the deal will help ISP as It is valued at a low pre-synergy multiple of approximately 2.9 times EBITDA, and has a strong and loyal customer base in the SME sector. Additionally, it offers valuable synergy potential to MNF in network consolidation, cost sharing and product cross-selling.
The customer base of Connexus includes about 1000 SMB clients and almost 600 residential DSL customers.
Connexus provides us with a significant product portfolio in the managed data space, which will allow MNF to become a one stop comms shop for Australian SMEs, stated MNF CEO - Rene Sugo. MNF will now be able to offer customers a full suite of hosted services.
The new deal comes after MyNetFone s purchase of CallStream for an amount of $600,000. MNF declared this CallStream deal just in the previous week.
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