Over the Wire to acquire Fonebox, Zintel brands for $36m
11 August 2020, Written by Business News Australia
Telecommunications and IT solutions provider Over the Wire Holdings (ASX: OTW) is consolidating market share through the acquisition of two subsidiaries of J2 Global Inc (NASDAQ: JCM) for $36 million.
Just months after cementing its partnership with data centre powerhouse NEXTDC (ASX: NXT), Brisbane-based OTW has entered a binding agreement to purchase all shares in J2 Australia Cloud Connect Pty Ltd and New Zealand voice business Zintel Communications Limited.
The operations to be acquired have 80 employees across their Sydney headquarters along with offices in Brisbane and Auckland.
Best known for their brands Fonebox and Zintel, they provide 1300 and 1800 inbound telecommunication services to more than more than 9,000 business customers. The acquisition is expected to generate annualised revenue of $19 million and an EBITDA of $6 million.
OTW managing director and co-founder Michael Omeros (pictured) says the deal is a highly strategic acquisition for Over the Wire as acquiring a high-quality inbound voice business has been on the to-do list.
"The Fonebox and Zintel brands have been leaders in inbound telecommunications in Australia and New Zealand for over a decade," says Omeros.
"We welcome such a talented and specialised team to the Over the Wire group.
"This acquisition expedites our geographic expansion plans in New Zealand, as well as extending our inbound voice capability and gives us a stronger foundation for providing a broad range of voice services to our existing customers and the Australian and New Zealand business markets."
These new businesses are also expected to bring new solution capability to Over the Wire for inbound telephony, services including call routing intelligence, data intelligence, call management and analytics reporting, via a proprietary technology platform.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Business News Australia