Uniti Wireless acquires CPaaS specialist Fone Dynamics

Uniti Wireless acquires CPaaS specialist Fone Dynamics

Deal expected to be worth up to $8.4 million

Michael Simmons (Uniti Wireless)

Michael Simmons (Uniti Wireless)

Credit: Uniti Wireless

Uniti Wireless has revealed plans to acquire Australian communications platform-as-a-service (CPaaS) company Fone Dynamics in a deal worth up to $8.4 million.

Based in Brisbane, Fone Dynamics specialises in inbound voice and business-grade SMS services and it is said to have “extensive” intellectual property for its CPaaS offerings and data analytics.

Following the acquisition, co-founder and co-CEO Jordan Grives will join the Adelaide-based Uniti Wireless executive team, becoming a “sizeable” company shareholder. Its co-founder Shane Mitchell meanwhile is set to depart the company, Uniti Wireless confirmed.

Fone Dynamics, which has roughly 500 customers and under 20 members of staff, will retain its brand name and its products will be cross-sold by Uniti Wireless.

According to the terms of the deal, publicly-listed Uniti Wireless will pay a base sum of roughly $5.04 million in ordinary shares for Fone Dynamics, based on its predicted EBITDA for this financial year.

It will then add an earn-out of roughly $3.4 million, which is expected to be paid in shares or cash by July next year.

“This is a fantastic transaction for [Uniti Wireless] shareholders, which will deliver sizeable and growing cash earnings, in a space with substantial scope for expansion, given Fone Dynamics has only a small fraction of the available market,” Uniti Wireless CEO Michael Simmons said.

“Jordan and his team are proven deliverers, with remarkable year-on-year revenue growth since inception, whilst maintaining very respectable margins and high customer retention.”

Simmons added that the deal would help support and expand the company’s fixed wireless and private fibre footprints in Queensland.

The deal - which is expected to be completed by 1 June - is Uniti Wireless’ third to be announced in two months. At the end of March, it confirmed plans to acquire telecommunications provider Spirit Telecom, an offer that was rejected by the telco.

Two weeks later, it announced its intention to purchase Queensland fibre builder Pivit in a $450,000-deal.

Founded in 2014 as an “alternative option” to the National Broadband Network (NBN), Uniti Wireless recently appointed industry veteran Vaughan Bowen as an executive director, tasking him with overseeing its merger and acquisition pipeline.

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Tags brisbaneacquisitionadelaideCPaaSUniti WirelessFone Dynamics


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