Vonex to acquire 2SG Wholesale in lucrative comms deal
Fast-moving teleco disrupter, Vonex, will take on the client and technology base from veteran 2SG Wholesale, a telecommunications and data provider, for a turn-key deal with the potential to lift its annualised recurring revenues to over $14 million. The deal is laden with opportunities for Vonex to apply synergies across the business units and comes gift wrapped with dozens of tier-1 clients that will see Vonex’s major client base soar from 20 to over 160.
2SG currently provides hardware and broadband connectivity via the Optus 4D network to Australian Managed Service Providers, ISPs and System Integrators.
For a largely scrip-based “turn-key” deal, Vonex is truly spreading its wings as a full-service, telecommunications provider. The total consideration given to 2SG looks like 21,578,947 Vonex shares at $0.10 and A$500,000 in cash on completion of the transaction.
In addition to 2SGs wholesale client base, Vonex will retain 2SG’s staff, its contracts with a couple of tier-1 telco companies, among others, stock, a proprietary billing and provisioning system and a clean 2SG balance sheet that comes with no debt.
Co-founder of 2SG, Jason Gomersall will join the Vonex board as a Non-Executive Director.
Gomersall has over 25 years in the business and foreran the mobile phone market as one of the initial franchisees of the Optus World chain of retail stores in the 1990s.
Vonex Managing Director, Matt Fahey, said: “The acquisition of 2SG Wholesale’s established operations will provide an instant expansion of the Company’s wholesale customer base and will be highly earnings-accretive…”
Mr Gomersall, said: “… I view 2SG Wholesale and Vonex as highly complementary businesses and I look forward to helping to drive the growth of our combined group”.
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