MyNetFone buys iBoss platform for $1.4 million

Telecommunications provider MyNetFone (MNF) has acquired the business and platform of wholesale telecommunications enabler iBoss for AU$1.4 million today.

MNF expects that, based on existing customer base, iBoss will contribute approximately AU$250,000 to the company's EBITDA in the 2015 financial year.

MNF CEO Rene Sugo said while the size of the transaction is "relatively immaterial", iBoss' platform provides the essential link between wholesale telecommunications operators and suppliers, including Telstra, Optus, and AAPT.

"Valued at a low pre-synergy multiple of approximately 5.5 times EBITDA, the iBoss platform is complementary to, but also adds a completely new capability to the MNF business which we believe can be significantly built upon well into the future," he said

"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."

MyNetFone said AU$140,000 will be payable immediately, and the remainder AU$1.26 million will be paid on completion of the acquisition on 18 July 2014.

Less than two months ago iBoss' customer base business was saved from voluntary administration by Vocus Communications — a subsidiary of the AsiaPAC Communications Group.