Based in Melbourne, iBoss provides a link between wholesale telecommunications operators and their suppliers such as Telstra and Optus.

My Net Fone has agreed to pay $1.4 million for the business and its intellectual property, and expects that the existing customer base it will contribute approximately $250,000 to the company’s earnings (EBITDA) in the 2014-15 financial year.

Developed over the past ten years, the iBoss platform manages billing, communications activity, provisioning and operations. It originally stood for ‘international back office support system’, and was developed by wholesale telco ispONE, which went broke last year leaving thousands of customers stranded.

Most of ispONE’s assets, including iBoss, were then acquired by CONEC2, which also went broke, before being picked up by Vocus. Now, it seems, iBoss has a home.

“The acquisition of iBoss will provide enormous benefits to My Net Fone,” said My Net Fone CEO Rene Sugo, “though the size of this trans action is relatively immaterial, with a low pre‐synergy multiple of approximately 5 .5 times EBITDA.

“The iBoss platform is complementary to My Net Fone, but also adds a completely new capability to the business, which we believe can be significantly built upon well into the future.

“There are around 750 small CSPs in the Australian market, of which about 150 are already our customers. This acquisition allows us to enhance our offering to this customer base by bundling mobile, landline, DSL and NBN into one offering, alongside the existing VoIP service. It also offers us the opportunity to attract a broader range of customers looking to resell a full suite of telecommunications products,” Sugo said.

My Net Fone will acquire iBoss for a total consideration of $1.4 million in cash, with $140,000 pay able immediately and the remaining $1.26 million to be paid on completion, which is scheduled to occur on 18 July 2014. Sugo said the deal is still subject to ”certain practical conditions” which he said he did not expect any issues with.

This transaction is being funded from My Net Fone’s existing cash reserves and Sogo said he did not expect iBoss would need further funding.

He said the acquisition would be earnings accretive – it will add to earning per share.