Symbio Group Of Companies To Be Purchased By My Net Fone Limited Tuesday 30 August 2011 @ 14:19
Today My Net Fone Limited (ASX:MNF) announced it has signed a Heads of Agreement to purchase the Symbio Group of companies. The deal is subject to shareholder and regulatory approvals, and is expected to complete in October 2011.
Symbio will continue to operate as an independent wholesale carrier servicing the Australian and international VoIP market. There will be no change to structure or operations and Symbio Wholesale will operate as a wholly owned subsidiary of MNF. There will be no effect on Symbio's customers, who will continue to receive the high standard of service they are used to, together with the best value prices in the industry.
Symbio provides Call Termination, Call Origination, Number Porting and White Label Hosted VoIP Solutions to its extensive Australian and international customer base. It has enjoyed impressive success in Australia, New Zealand and the Asia Pacific region; and is aiming to further capitalise on its unique abilities in Asia through its subsidiary, Symbio Wholesale in Singapore. My Net Fone has worked closely with Symbio for many years on both product development and provision of VoIP service. This acquisition will strengthen My Net Fone's continued product innovation, deliver significant cost savings in service delivery, and provide a solid path to international growth.
The combined group has forecast revenues of $40 million and $48 million, and NPAT of $2.09 million and $4 million in the 2012 and 2013 financial years. The purchase consideration is based on 4 times net earnings, with an initial $2M payment upon completion of the purchase process and the balance to be payable according to forecast achievement in two tranches at the end of 2012 and 2013 financial years.
For further details you can download the official MNF release.