Telecommunications provider Uniti Wireless (ASX: UWL) is set to shell out $2 million on the acquisition of communications platform-as-a-service (CPaaS) company Call Dynamics Pty Ltd.
Under the terms of the deal, Uniti will pay 63% of the consideration in cash and the remainder in Uniti ordinary fully paid shares, based on the volume weighted average price of the last 10 days’ trade.
The cash component will be split into two equal instalments – the first payable on completion of the transaction and the remainder payable 12 months after completion, subject to the achievement of forecast earnings in the 2020 financial year.
The share consideration will be subject to certain holding lock (or escrow) restrictions which will oblige Call Dynamics to utilise a securities broker nominated by Uniti.
The nominated broker will ensure an orderly transition of share ownership as and when former Call Dynamics shareholders elect to sell their Uniti shares.
The acquisition is forecast to be materially earnings per share accretive to shareholders from 2020.
Based on forecast earnings for the business, earnings per share accretion will start at approximately 13% and increase to approximately 20% in 2021 as a result of integration efficiencies and anticipated growth in customer numbers.
Call Dynamics focuses on inbound voice services, call tracking solutions to track inbound traffic sources, and keywords to enhance marketing efficiency and call-handling professionalism.
Uniti chief executive officer Michael Simmons said the Call Dynamics acquisition would be another “highly-attractive transaction” set to deliver material and cash earnings.
“There are complementary features between [our acquired businesses] which will enable us to aggressively pursue customer growth from the small home office market through to larger enterprises with enhanced sales reach, product diversity, digital marketing smarts and scale efficiency,” he said.
“Importantly, the Call Dynamics purchase will further strengthen our third ‘pillar’ of specialty telco services and build upon our commitment to cost-efficiently acquire businesses which are highly cash-generative and add meaningfully to our earnings per share value.”
The Call Dynamics buy-out is the latest in a string of strategic acquisitions for Uniti and follows last week’s announcement that it would spend $5 million on the purchase of Queensland CPaaS provider Fone Dynamics.
Earlier this year, Uniti also spent $9.5 million to acquire Australian internet service provider FuzeNet, and $450,000 on the acquisition of broadband retailer Pivit.
Mr Simmons said a number of mutual efficiencies between Fone Dynamics and Call Dynamics – including a common CPaaS platform, future software development, combined digital marketing and lead generation – would allow the companies to be operationally integrated over the near term.
Mr Simmons said the company would continue to target complementary accretive acquisition prospects across fixed wireless, fibre and specialty services industry sectors.
The Call Dynamics acquisition is scheduled for completion on 1 June.
At midday, shares in Uniti were 14.44% higher at $1.03.