MNF Group has sold telecommunications service provider Symmetry Networks to Sydney-based white-label telco United Networks.
Symmetry Networks was one of the Inabox subsidiaries MNF acquired in October 2018 for a combined $33.5 million. The company provides telco, cloud and managed services.
United Networks also acquired MNF reseller NextCom, a business telco services provider.
In an ASX announcement (pdf) released today, United Networks said both companies will merge with its other service provider businesses. The telco also entered into a master wholesale agreement with MNF, where United will buy services from MNF.
United Networks chief executive Victor Tsaccounis said the acquisitions are in line with the company’s strategy to grow its service provider pillar, and should provide an “immediate increase” in recurring revenues.
“We expect to be able to integrate the new businesses quickly into our existing structure, allowing for a positive contribution to earnings over the year for shareholders.”
United Networks said the acquisitions will be funded by internal cashflows over a 15-month period, or a total cash consideration of $340,000. The company expects to see annualised recurring revenue of $850,000, with an EBITDA contribution of $300,000.