Gold Coast-based Pivotel will acquire Swoop’s Voicehub Groupand Harbourtel, the entities that own and operate its voice call termination business, Australian media reported.

“The strategic acquisition of agile voice service provider VoiceHub reinforces Pivotel's commitment to providing market leading wholesale voice and messaging services across Australia and New Zealand,” Pivotel said in a statement.

Pivotel CEO Peter Bolger believes the deal will “expand and strengthen the company’s service offering, sales, and support teams” and “drive long-term growth in our wholesale voice and messaging business.”

“As demand for cloud-based services continues to grow, so does the need to provide quality voice and messaging origination and termination services,” he added.

“Voicehub are specialists in the wholesale voice business and their expertise will assist Pivotel as we continue to develop innovative solutions for the evolving unified communications market.”

As part of the deal, Swoop entered into a five-year contract with Pivotel to maintain its wholesale rates and cost structure.

Swoop bought Voicehub in 2021 for $6 million, comprising $4 million cash and $2 million Swoop shares.

Swoop said it will focus on its key markets and customers after seeing “some growth” from its voice unit.

“As we close out FY24 we continue to see the core underlying residential and SMB-focused business units deliver strong organic growth across our key products of fixed wireless broadband, NBN, mobile, and voice,” told Swoop CEO Alex West (pictured) to shareholders.

“The $9 million proceeds of this transaction will provide additional balance sheet flexibility as well as being used to fund growth in our residential infrastructure, mobile, and NBN sales engine and provide a stronger operating cash position in the underlying business for FY25.”

Swoop expects that the transaction will be completed by 1 July.

This first appeared in the subscription newsletter CommsWire on 12 June 2024.