MyNetFone acquires CallStream

MyNetFone to pay $600,000 from cash reserves

Australian telecommunications provider, MyNetFone, has agreed to acquire client base and assets of inbound call specialist, CallStream, for $600,000.

The acquisition will be completed in cash payable in two instalments over the next 60 days, subject to successful customer migration.

CallStream is expected to contribute gross revenue of $1 million per annum. It is also expected to deliver earnings before interest, taxes, depreciation and amortisation (EBITDA) of approximately $600,000 following a short period of integration.

MyNetFone said that earnings in subsequent years are expected to further improve following complete network and product integration, and once new sales and marketing initiatives are deployed to leverage the additional brand and product line concepts into the telco’s portfolio.

The acquisition is expected to be EPS accretive in FY2013 and will be fully funded from existing cash reserves and future free cash flow, including the cash generated by CallStream.

These services are currently hosted on CallStream infrastructure carried over third party network aggregators, and will be migrated to the Symbio network in order to achieve the operational and cost synergies stated above.

In an official statement, MyNetFone said that its Board “feels this deal represents outstanding value to shareholders and is a prudent use of the company’s cash reserves.”

“We remain cash flow positive, free of bank debt and well capable of paying dividends. The company expects to pay a fully franked dividend in the current half year, as per our previous track record.”

MyNetFone added that will continue to evaluate potential acquisition opportunities.

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