EFTel acquires Concept Group for $1.5m

EFTel acquires Concept Group for $1.5m

Acquisition will give ISP a boost into the Asian market

ASX-listed Internet service provider, EFTel (ASX:EFT) has acquired the business operations of Concept Group worth about $1.5 million.

As a part of the acquisition, EFTel has also taken on Concept’s outsourced human resource and customer support services in Malaysia. The ISP will issue 8.35million shares and a deferred cash payment of $965,000.

EFTel CEO, Simon Ehrenfeld, said Concept’s ISP business and Malaysian operations were the major drawcard.

“It’s become increasingly hard to recruit human resources in Australia and customers want really good helpdesk service,” he said.

The acquisition meant EFTel would add an extra 8000 active service accounts to its books and boost revenues by $3 million per annum, Ehrenfeld said.

EFTel has about 140,000 active accounts.

Ehrenfeld said Concept had a good system for provisioning ADSL2+ services and it would give EFTel the ability to expand its BroadbandNext footprint.

“We’ll have access through the Concept business to cover exchanges where we haven’t built our own BroadbandNext exchanges,” he said. “Building up our overseas capabilities is other big attraction.

“We think the next logical step could be servicing customers in other markets. We’re becoming increasingly comfortable with doing business with overseas companies.”

All of Concept’s staff will be kept on-board including managing director, Greg Broux. The organisation has 15 staff in Malaysia and five in Australia, Ehrenfeld said.

“We’ll be assessing the strength of the brand, but at this stage, it will be continuing as is,” Ehrenfeld said. “We’re trying to keep it business as usual for Concept customers.”

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