MyNetFone Group (ASX:MNF) has entered into an agreement to acquire Australian conferencing and collaboration provider, Conference Call International (CCI) for $18 million.
Through the merger, MyNetFone (MNF) will gain a portfolio of 5,000 enterprise customers across A/NZ and Asia Pacific, and three brands currently operating in the space including Express Virtual Meetings, Ozlink and Eureka Conferencing.
“The acquisition of CCI provides MNF a significant entry into the audio conferencing and collaboration market in Australia and the region. These applications generate high margin recurring revenues with potential for consistent, long-term growth and innovation potential,” said MNF CEO, Rene Sugo.
MNF already provides networking and numbering services to multiple audio conferencing and collaboration companies under the group’s domestic and global wholesale segments and, according to the company, the acquisition offers "significant revenue" potential in its domestic retail segment in terms of government and business customers.
“These applications are an excellent fit with the current MNF business, enterprise and government sub-segment, as well as a high value synergy with the group's domestic and global network assets,” Sugo added.
MNF will also acquire the company’s scalable audio conferencing service platform, which has 50 per cent available capacity for growth, and will gain 23 specialist staff in marketing, sales and operations.
According to the company, other strategic benefits include additional high margin revenue stream of $7.9m (FY17 forecast) from enterprise and government customers in both A/NZ and APAC.
MNF added that it has decided to raise new capital to fund the CCI acquisition to preserve current cash and debt reserves for more potential acquisition activity in the near future.
On 31 January, MNF was named among six other telcos to receive new contracts in the overhaul of the Victorian government's long-running telecommunications services procurement scheme.
The state inked five new contracts, ranging in duration from three to four years, combining the services of Telstra and Optus, with additional niche services offered by NEC, Vocus, MNF, Mitel, and R-Group.