ASX-listed My Net Phone to buy Spark's international voice business for $22.4M
By Jonathan Underhill
April 2 (BusinessDesk) - My Net Fone, an ASX-listed provider of hosted voice and data communications services, has
agreed to buy Spark New Zealand's international voice business for $22.4 million
The company said in a statement to the ASX that the business will add A$90 million to A$100 million in annual revenue
from wholesale voice trading and generate pretax earnings of about A$3.5 million in its first year, before potential
synergies and savings. It expects to complete the purchase by the end of April, apart from the US assets, which require
government approvals.
Spark will retain its international data business. The sale was part of Spark’s strategy to focus primarily on its New
Zealand operations .
My Net Phone said the acquisition will give it a "carrier grade global voice network spanning four continents,
specialist staff, custom-built international voice trading systems, over 220 international carrier relationships and
interconnect agreements and the Telecom New Zealand International brand. The purchase will give it an incremental 2.8
billion minutes a year, and a global wholesale customer base of 220. It also will have a three-year contract with Spark
to provide international minutes which it says is worth about A$10 million a year in sales.
The Australian company described the deal "as a huge step up" that will transform it "into a significant player in the
global market."
My Net Phone will initially fund the transaction via an A$25 million bank facility. Its shares last traded on the ASX at
A$3.01 and have gained 44 percent in the past 12 months. Spark rose 0.7 percent to $3.09 and has advanced 26 percent in
the past year.
(BusinessDesk)