Australian hosted voice and data communications company, My Net Fone (ASX:MNF), has announced an acquisition of international wholesale voice carrier in New Zealand, Telecom New Zealand International (TNZI).
It was stated, in an ASX statement, that the purchase will cost My Net Fone NZ$22.4 million in cash. But, My Net Fone will initially fund the acquisition through a NZ$25 million bank facility in an attempt to cover the purchase price and working capital with a conservative buffer.
The buy will give My Net Fone access to a long-term provision of the bulk of TNZI’s international voice traffic to and from New Zealand, as well as its proprietary platforms and traffic management systems.
All physical assets, operating contracts, its portfolio of more than 220 international carrier relationships, interconnect agreements and custom-built international voice trading systems (including all intellectual property and software source code) will also come under the My Net Fone umbrella.
According to My Net Fone CEO, Rene Sugo, this move will make the telco a global voice network carrier, spanning across Europe, North America, Asia, as well as the A/NZ and Pacific region.
“This transforms My Net Fone into a significant voice player in the global market. It would have taken the company many, many years and a far greater investment to build the team, capabilities, customer base and network reach that this deal brings us,” he said.
Sugo added that the acquisition of TNZI provides My Net Fone with an opportunity to add its existing services with substantial additional global minutes traffic. According to him, the additional network footprint and customer relationships will be a launching pad for the company to take its wholesale hosted services to a global market.
In addition, the company said it plans to build out the TNZI network with additional capabilities in order to deliver My Net Fone’s product suites and hosted value-added services such as number hosting, managed SIP trunks, and managed end-points.
My Net Fone expects to settle and complete the purchase of TNZI from Spark New Zealand (ASX:SPK) by the end of April 2015.