MyNetFone to buy iBoss for $1.4 million

MyNetFone to buy iBoss for $1.4 million

Transaction funded from MNF’s existing cash reserves

Australian telco, MyNetFone, is set to acquire the business and intellectual property of wholesale telco enabler, iBoss.

MyNetFone has agreed to pay $1.4 million for iBoss and expects that from the existing customer base it will contribute about $250,000 to the company’s EBITDA in the 2014/15 financial year.

It will acquire iBoss for a total consideration of $1.4 million in cash, with $140,000 payable immediately and the remaining $1.26M to be paid on completion.

This is scheduled to occur on July 18, 2014, and is subject to certain practical conditions.

The transaction is being funded from MNF’s existing cash reserves and the Board does not expect iBoss will need further funding of a material nature. This acquisition will be earnings accretive.

Based in Melbourne, iBoss provides a link between wholesale telecommunications operators and their suppliers such as Telstra and Optus.

The iBoss platform manages billing, communications activity, provisioning and operations.

It has its own infrastructure and is supported by an experienced and highly skilled team.

MyNetFone chief executive, Rene Sugo, said the acquisition of iBoss would provide enormous benefits to MyNetFone, even though the size of this transaction is relatively immaterial.

"Valued at a low pre-synergy multiple of approximately 5.5 times EBITDA, the iBoss platform is complementary to, but also adds a completely new capability to the MNF business which we believe can be significantly built upon well into the future”, he said.

“There are around 750 small CSPs in the Australian market, of which about 150 are already our customers.

He said the acquisition allowed the company to enhance its offering to this customer base by bundling mobile, landline, DSL and NBN into one offering, alongside the existing VoIP service.

"It also offers us the opportunity to attract a broader range of customers looking to resell a full suite of telecommunications products”, he said.

Read more: Interactive Intelligence appoints new A/NZ manager

According to a company statement, the board is extremely positive about the future growth prospects for the company and will continue to look for acquisition opportunities that will enhance earnings.

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Tags TelstraoptusRene SugoibossMy Net Fone chief executive

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