Uniti Wireless buys Call Dynamics two weeks after taking over partner company
Written on the 15 May 2019 by Paris Faint
Uniti Wireless (ASX: UWL) has announced its takeover of Call Dynamics, the fast-growing Communications Platform-as-a-Service company founded by IT and telecom veterans Stuart Marburg and Tim Syratt.
Call Dynamics is a company which focuses on inbound voice services, call tracking and call handing services which it provides to small businesses around the country.
The customers which Call Dynamics target complement the medium and larger businesses that are targeted by its brother company Fone Dynamics, the CPaaS provider which will also be acquired by Uniti in a separate transaction which was announced earlier this month.
Fone Dynamics was founded by serial entrepreneur and Young Entrepreneur of the Year (2016) Jordan Grives.
Giving its rationale for the takeovers, Uniti says it has identified several "mutual efficiencies" between Fone Dynamics and Call Dynamics.
These include adopting a common CPaaS platform, future software development, combined digital marketing and lead generation.
As such, the company plans to integrate the operations of both Call Dynamics and Fone Dynamics over the near term.
Uniti will pay $2 million to acquire Call Dynamics in a transaction comprised of 37 per cent ordinary fully paid shares and 63 per cent cash.
The previous acquisition of Fone Dynamics was announced on 1 May.
The base acquisition price for Grives' tech company is $5.04 million but could be as much as $8.4 million depending on its earnings in FY2020.
Grives is a serious figure in the CPaaS industry, having previously founded Fonebox which he sold in 2016 to a NASDAQ-listed company J2 Global for $30 million. Grives founded Fonebox when he was just 18 years old.
As part of the transaction Grives will join the Uniti Wireless executive leadership team and will also become a sizeable shareholder in Adelaide-based Uniti.
Uniti says the acquisition is forecast to be significantly earnings per share accretive to shareholders in FY20 and beyond.
Uniti Wireless was founded by Che Metcalfe and Sasha Baranikow and listed on the ASX at the beginning of 2019.
Almost immediately after listing, the two founders were unceremoniously terminated from their positions in the company. The termination of Baranikow is currently the subject of a Federal Court case.
UWL shares spiked on the announcement to trade 12.2 per cent up at $1.01 at the time of writing (12:29pm AEST).
Author: Paris Faint