Australia mobile provider Amaysim is entering the broadband market through the acquisition of internet service provider Australian Broadband Services (AusBBS).
Amaysim will pay $1 million in cash, $1.5 million in Amaysim shares on completion and another $1.5 million in shares one year after completion. AusBBS has agreed to a maximum earn-out of $5.45 million subject to subscriber growth and profitability targets.
The telco plans to launch its first batch of broadband products into the market by the end of this year, including ADSL and NBN services. The company said there would also be opportunities to sell other bundles and products into the home.
Chief executive Julian Ogrin said Amaysim would replicate its mobile market strategy by offering competitive broadband prices, backed up by "customary high service levels".
"It is logical for Amaysim to enter the broadband market in the next 12 months to take advantage of the likely customer switching behaviour that will stem from the continued NBN rollout," said Ogrin.
"Acquiring AusBBS' technology platform is a great way for us to accelerate our broadband strategy, become even more relevant in data-hungry Australian households and bring our 'less hassles' approach to broadband."
Founded in 2012, AusBBS provides a range of ADSL and NBN connections to residential and business customers. It also resells devices such as modems, routers and phone hardware. AUSBBS's three telco experts will join Amaysim as employees.
Amaysim also acquired fellow Optus 4G reseller Vaya back in January for $70 million, composed of $5 million in cash, $15 million in shares and $50 million of Vaya's liabilities to Optus to be repaid over two years.