Amaysim buys OVO Mobile for up to $15.8m

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Amaysim buys OVO Mobile for up to $15.8m

Continues strategy of snapping up fellow Optus-based MVNOs.

Amaysim is continuing a long trend of snapping up fellow mobile virtual network operators, this time paying up to $15.8 million for OVO Mobile’s 77,000 subscribers.

The company said in a financial filing that the integration of OVO Mobile would bring Amaysim’s total subscriber base to 1.17 million.

It has been on a long path of consolidation, targeting mobile virtual network operators (MVNOs) whose services run on the Optus network, the same as Amaysim.

Its acquisition trail includes Vaya (140,000 subscribers) in June 2016, Jeenee Mobile (41,700 subscribers) late last year, and now OVO Mobile (77,000 subscribers) in June 2020.

Amaysim said it would migrate OVO subscribers onto its own network supply agreement with Optus, a process which is expected to take a bit less than four months.

The company said it expected OVO to “be earnings accretive in FY2021, with an increased earnings contribution in FY2022 and beyond”.

“The acquisition of OVO Mobile’s subscribers is further evidence of the execution of our strategic initiative to grow the recurring mobile subscriber base, both organically and through bolt-on acquisitions,” Amaysim’s CEO Peter O’Connell said.

“Under our asset-light operating structure, we are able to scale the subscriber base with no, or nominal, additional resources, delivering positive future earnings from the acquired base.

“Having completed the integration of Jeenee Mobile in less than three months, we have the skills and experience to accomplish an efficient and successful migration and we look forward to welcoming OVO customers to the Amaysim family.”

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