Telecommunications services provider Hubify has acquired the customer database of Brisbane telco Nethoster for $800,000 cash.
In its ASX announcement, Hubify said the deal brings in 203 small and medium business customers with an annual recurring revenue of $4900 each, a total of over $1 million.
The acquisition also expands the company’s presence into Queensland and its support services through Nethoster’s overseas operations.
Nethoster is a provider of data, voice, mobility and managed services to business customers predominantly in Queensland and northern New South Wales. The company will remain an independent entity following the transferral of the customer database on 26 February.
“Following the recent release of the company’s H121 results, which demonstrated strong organic growth in the core business, we’re pleased to show shareholders that we are progressing on the other part of our dual-pronged growth strategy in acquiring a strategically compelling, complementary and earnings accretive business in the telco space,” Hubify chief executive Victor Tsaccounis said.
“I would like to thank Elias Briffa the CEO of Nethoster for his efforts in this process. As we continue to build out our growth strategy, the purchase of the Nethoster database represents the addition of a solid customer base built over time with good retention rates.
“We will take the same approach as we have with prior acquisitions to implement our cross-sell strategy using our experienced sales staff to service these new Hubify customers and generate additional revenue streams.”
Hubify was most recently known as United Networks before adopting the new name in November following a shareholder vote. The company was known as a specialist of white-labelled prepaid international roaming SIM cards and location services.
Prior to the rebrand, the company made a string of acquisitions starting with regional telco Broadland Solutions and MNF Group subsidiary Symmetry Networks in 2019, and C3 Innovations and Red Telecom in 2020. The new name was introduced to reflect the now-diversified business.