Victor Tsaccounis (United Networks)
United Networks has rummaged through the bargain bin for its latest acquisitions, paying just $340,000 for two telecommunication service providers.
The Sydney-based telco has acquired MNF-group owned Symmetry and Telstra-wholesale specialists NextCom.
The two acquisitions will be merged in with the other UN service provider businesses, which it claims will grow the overall “service provider pillar”.
UN, which offers white-labelled prepaid international roaming SIM cards and location services, said the purchases will provide further efficiencies across its service provider business and will open up cross-selling opportunities for the global and mobile business units.
The acquisitions will be funded from UN’s cash flows over 15 months and will allegedly provide an annual earnings contribution of $300,000.
The publicly listed provider has also entered into a master wholesale agreement to purchase services from MNF Group.
UN’s announcement comes three months after its purchase of Broadland Group, which led to major restructuring of its business and management.
“These acquisitions are in line with our strategy to grow the ‘service provider pillar’, providing an immediate increase in recurring revenues,” Tsaccounis said.
“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.”
In its preliminary financial report, UN revealed a net loss of $1.1 million despite a 12.8 per cent rise in revenues, giving it a total of $3 million.
