Friday, 29 November 2019 11:39

Vonex acquiring 2SG for $2.66 million Featured

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Vonex acquiring 2SG for $2.66 million Image stuart miles, FreeDigitalPhotos.net

Australian-listed telecommunications provider Vonex is to acquire wholesale data solutions provider 2SG.

Under the deal Vonex (ASX: VN8) is offering $2.66 million for the Brisbane-based 2SG which provides its wholesale services to Australian Managed Service Providers, ISPs and System Integrators.

The acquisition is subject to Vonex completing legal and financial due diligence to its satisfaction, which is likely to complete prior to January 15 next year.
The offer from Vonex comprises 21,578,947 ordinary shares at a deemed issue price of $0.10 to be escrowed for 12 months post issue and $500,000 in cash on completion of transaction

Vonex says the acquisition would bring to the company 2SG Wholesale’s proprietary billing and provisioning systems, staff and equipment, contracts with major telecommunications companies, 140 wholesale customers, stock and no debt.

“The conservative cash outlay helps preserves the company’s cash position, while also highlighting the belief that the 2SG Wholesale vendors have in Vonex taking the combined businesses to the next level and generating attractive returns for all shareholders,” Vonex said in a statement on Friday.

“The acquisition of 2SG Wholesale’s established operations will provide an instant expansion of the Company’s wholesale customer base, and will be highly earnings-accretive,” said Vonex Managing Director, Matt Fahey.

“It will empower Vonex to add value to our wholesale and retail customers through better network access, new proprietary billing and provisioning systems and the latest telco products and services.

“We look forward to growing more rapidly and profitably as we integrate 2SG Wholesale’s operations into Vonex’s fast-growing existing business.”

2SG co-founder and proposed Vonex Non-Executive Director, Jason Gomersall, said. “Vonex is a business I have watched with keen interest through an exciting period for the Australian telco industry with the rollout of the NBN. I view 2SG Wholesale and Vonex as highly complementary businesses and I look forward to helping to drive the growth of our combined group.

“I am excited to have the opportunity to join the Vonex Board. I believe with my industry experience and expertise, I can make a meaningful contribution during this exciting growth phase.”

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