Amaysim closes $7.8M Jeenee buy
- 02 December, 2019 10:20
Telco provider Amaysim has wrapped up its $7.8 million acquisition of mobile virtual network operator (MVNO) Jeenee Communications, in a move aimed at further building its presence in the local market.
The publicly-listed telco told shareholders on 2 December that the acquisition forms part of its strategic pillar to grow its position in the mobile market, both organically and through complementary bolt-on acquisitions.
According to Amaysim, Jeenee has more than 41,700 recurring mobile subscribers and, like Amaysim, taps into the Optus network. The addition of Jeenee’s mobile subscribers, brings the Amaysim Group’s total recurring mobile subscriber base to 698,600 as of 28 November 2019.
“The acquisition of Jeenee is a financially and strategically attractive opportunity that allows Amaysim to leverage its revitalised Optus NSA [network supply agreement] and operating structure to increase shareholder value,” Amaysim’s CEO and managing director Peter O’Connell said.
“This acquisition further adds to our growing mobile subscriber base, executing on our strategic pillar to grow the mobile business and cement our position as the leading MVNO.
“Jeenee has a high-quality subscriber base and we look forward to welcoming its customers to the Amaysim Group and providing them with our outstanding customer service,” he said.
Amaysim told shareholders it has a robust migration plan for Jeenee’s subscribers, with the objective of causing minimal customer impact. Under the plan, the Jeenee brand and systems will be retired over the next six months or so.
“The Amaysim Group’s existing brands, systems and processes will be leveraged to realise synergies and drive earnings,” the company said in a statement.
In May, Amaysim updated its wholesale network services agreement with Optus, which was first signed when the company launched in 2010.
Amaysim said earlier this year that the updated deal, which runs until 30 June 2022, will support its strategy and growth ambitions.