ASX-listed ConnXion Ventures (ASX: CXN) is acquiring software-as-a-service specialist, Sonnet, to boost its regional presence.
Sonnet’s purchase price has been set at 5.125 the audited EBITDA figure for June 30, 2009. It will be paid in the form of CXN ordinary shares at $0.041 cents per share, or about 68.25 million new shares.
Sonnet managing director, Baden Wright, will be retained as managing director of ConnXion Data under a two-year contract.
Sonnet is based in Australia and also has subsidiaries in Singapore and The Philippines. Its key customers include Jetstar, BNP Paribas and IBM.
In a statement, ConnXion Ventures said the acquisition would boost cost savings around its Data business, as well as provide access to new products and services and a broader range of clients.
ConnXion Ventures managing director, David McCann, said the acquisition was an important step in ensuring that the right management, resources and infrastructure are in place to drive growth across revenue, profit and geographical spread.
He said the deal would improve ConnXion’s Asian reach. Sonnet revealed it was developing a Singaporean presence last year.