ASX-listed People Telecom (ASX: PEO) has acquired the assets and customer base of hosted IP provider, ValueNet, for an undisclosed sum.

People Telecom CEO, John Stanton, said it was in the process of enhancing its presence in the hosted voice market.

"We looked at setting up our own platform and the option of reselling. During the course of that it became apparent to us that there was the potential to buy a platform that was already developed, mature and reliable," he said. "The best option for us was to acquire ValueNet."

Six out of 11 ValueNet's technical and commercial staff will be kept on-board.

Stanton said he had been in contact with ValueNet's channel partner network and indicated his intensions to continue working with them.

"We're very keen to reinvigorate and further strengthen the channel," he said.

Stanton said there were about 1100 users sitting on the ValueNet platform across more than 40 enterprises.

"This is just a drop in the ocean compared to the addressable market for a solution like this in Australia," he said. "Our main focus is on the SME market - while the hosted voice solution is an excellent alternative for SMEs, it hasn't gained as much traction in the market as many people might have projected."

Stanton said the ValueNet acquisition gave People Telecom with a broader product set and the opportunity to access new customers. ValueNet provides a range of hosted services including enhanced voicemail, virtual receptionist capability, advanced conferencing and built-in security.

"We see it as an opportunity for our existing customer base to move to a high-value, feature-rich environment. I have no doubt there will be a number of customers that will choose to up grade to a hosted solution over time," Stanton said.