Voice over internet protocol (VoIP) provider Engin has been sold off by Seven Group to wholesale broadband provider Eftel for AU$9.1 million, a price much lower than the owners had reportedly been seeking.
Kerry Stoke's media giant company Seven Group today confirmed that Eftel would buy VoIP company Engin from Seven, including 85,000 customers and intellectual property.
It had been hinted earlier this month that Seven Group was looking to offload Engin for between AU$10 million and AU$15 million, which was between a third and a half of the AU$30.6 million that Seven Group has invested in the company since 2006.
Eftel CEO Scott Stavretis said, in acquiring Engin for less than the reportedly sought price, that the purchase of Engin will be important as the National Broadband Network (NBN) rolls out.
"VoIP will be the solution used to deliver traditional fixed-line voice calls," he said. "The VoIP scale and experience acquired under this transaction will greatly assist the Eftel business as the industry undergoes this technology change."
Seven Group has increasingly been moving out of the telecommunications business, after selling off Vividwireless to Optus earlier this year for AU$230 million.
The sale comes as more telecoms companies look to invest in VoIP services. Telstra CEO David Thodey revealed last week that the company will soon expand its own VoIP offering beyond just business, now looking to offer services to landline and mobile customers.