Vonex completes acquisition of profitable MyNetFone Direct Business
Vonex chief executive officer Matt Fahey says the company is excited to deliver further growth in the year ahead.
Vonex (ASX: VN8) has completed its acquisition of MyNetFone Direct Business after making the final monthly cash payment to Symbio Holdings (ASX: SYM).
All-up, Vonex has paid $31 million to Symbio in consideration for MyNetFone, which it agreed to acquire in June last year.
The acquisition involved a $20 million up front payment, plus $11 million spread out over 12 monthly instalments.
“Our completion of the deferred acquisition payments to Symbio marks the beginning of a new era for Vonex with greater financial flexibility,” Vonex chief executive officer Matt Fahey said.
“We are excited to deliver further growth in the year ahead, fully unencumbered by deferred acquisition payments, as we continue to advance merger and acquisition pipeline opportunities, which offer the potential to expand Vonex’s customer base, geographic presence and product suite.”
With the final deferred acquisition payment made, Vonex’s monthly net cash flow will be $833,000 higher.
MyNetFone
MyNetFone sells cloud phone, internet and mobile services to small-to-medium businesses and residential customers in Australia.
It also has a dedicated audio and video conferencing business.
During the June quarter (Q4 FY2022), MyNetFone and Vonex’s other acquisition Voiteck generated “supercharged” growth for its retail division.
The total contract value for new customer sales for the retail division was $2.37 million for the period – a year-on-year growth of 47%.
Vonex expects to make further efficiencies following the complete integration of MyNetFone, with expected savings of $600,000-700,000 a year.
Record revenue
Across the Vonex group, record revenue of $10.5 million was achieved in Q4 FY2022. This was 81% higher than the previous corresponding period.
Q4 FY2022 cash receipts rose 110% on the previous year to $9.5 million.
Meanwhile, annualised recurring revenue increased 97% year-on-year to $36.2 million.
“We are proud to report our continued delivery of our three-pronged growth strategy – focusing on growth in retail, in 2SG wholesale and through targeted acquisitions,” Mr Fahey said.
While continuing organic growth, Vonex says it remains on the hunt for profitable IT and telco businesses that offer potential for growth in revenue, profit, product diversity and entry into new markets.