Internet service and VoIP provider MyNetFone is set to acquire specialty ISP Connexus in a $4.75 million deal.
“We’ve been talking on and off for the last two years, and in the last couple of months things came together,” MyNetFone chief executive Rene Sugo told iTnews.
According to Sugo, the deal is being financed through cash at hand and funds raised from the stock market.
The deal is expected to add $1.6 million to MyNetFone’s pre-tax profit in 2012-13.
The motivation behind the deal is to obtain the intellectual property and skills base inside the Connexus business, Sugo said.
“We won’t be dropping the Connexus name, because the MyNetFone brand isn’t well known in the ISP space,” he said.
“I imagine we’ll keep the two brands for some time to come.”
He also said the desire to access Connexus’ intellectual property and skills meant there would be no reduction in headcount for the foreseeable future.
“Business continuity and customer retention are very important to us,” he said.
The deal is expected to close on December 31, 2012.
Copyright © iTnews.com.au . All rights reserved.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can start posting.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain @itnews.com.au to your white-listed senders.