Telco services company Vonex has acquired Adelaide-based telephony and internet services wholesaler Voiteck for $2.75 million.
The acquisition expands Vonex’s geographic expansion with a physical presence in Adelaide CBD, serving small and medium sized enterprises in South Australia.
Voiteck specialises in VoIP, hosted PBX, Optus mobile phone plans and internet via the NBN, private fibre, wireless broadband and point to point wireless. It has some 1000 customers in end-markets, including aged care and community clubs, as well as some 10,000 PBX users.
As part of the deal, Voiteck managing director Declan O’Callaghan will join Vonex upon completion of the transaction.
"I am delighted to bring Voiteck into the Vonex group. Vonex is an exciting and rapidly-emerging listed telecommunications group which provides Voiteck with a strong platform for growth,” O’Callaghan said.
"At Voiteck, our purpose is to keep businesses connected with amazing telecommunications solutions and provide our clients with innovative, high quality and adaptable telco technology which serves them now and long into the future.
O’Callaghan added that Voiteck aligns closely with Vonex and it’ll be business as usual for clients, their teams and their end-users.
“My staff and I are extremely proud to join the Vonex team and look forward to continuing to exceed our customers’ expectations," he added.
Vonex managing director Matt Fahey said, "We are pleased to welcome Voiteck to the Vonex group. Acquiring Voiteck represents an ideal fit within our established M&A strategy, through which we focus on geographic expansion, product enhancements and/or new customer growth through the acquisition of complementary and profitable telecommunications businesses at valuations that are EBITDA and EPS accretive to Vonex shareholders.
"In terms of engineering skillset and technical capabilities, we view Voiteck as an emerging version of Vonex. Voiteck's established presence across several niche verticals and strong standing in the SA market brings us into a new geographic region which presents exciting growth opportunities. The acquisition also brings Vonex a significant recurring revenue boost, with group ARR post completion of approximately $34.5 million.
“We look forward to welcoming Declan and his team to the Vonex group as we integrate Voiteck's operations into Vonex’s fast-growing businesses."
The $2.75 million consideration comprises $2.2 million in cash and $550,000 in escrowed shares. Vonex said an additional $2.75 million may be paid to Voiteck, subject to the “realisation of certain synergies and EBITDA growth” delivered in FY2022 and FY2023.
Vonex expects the transaction will complete sometime in January 2022.