Matt Fahey (Vonex)
Vonex has announced it is to acquire Queensland-based business internet provider OntheNet for a total of $9.6 million.
The wholesale and retail telecommunications services provider will acquire 100 per cent of the Gold Coast-based company for $7.7 million in cash and $1.9 million in escrowed shares.
Founded in 1995, OntheNet delivers a range of business internet products nationally, including the National Broadband Network (NBN), fibre and secure private networks.
It specialises in internet telephony services and offers secure data centre co-location sites for customers. It currently partners with Cisco, Fortinet and telephony provider 3CX.
According to Vonex, OntheNet delivered $15.2 million in revenue and $1.9 million in earnings before interest, tax, depreciation and amortisation (EBITDA) during the 2022 financial year.
The combined business will deliver $52.4 million in revenue and $8.5 million in EBITDA while allowing Vonex to broaden its offerings into data network services.
OntheNet’s data network services are underpinned by seven points of presence (PoPs) across Australia and a team of engineers within its 35-person workforce.
Vonex managing director Matt Fahey said the acquisition was “highly strategic” for the telco services provider.
“It expedites our plan to diversify our product suite, in particular adding market-leading data network services,” he said.
“OntheNet is a high-quality telco business that delivers data network, voice and hosting/colocation services primarily to business customers.”
Meanwhile, OntheNet managing director Tak Woo said Vonex will widen its own product portfolio and is a “natural fit”.
“Vonex’s network of channel partners will provide an exciting growth opportunity and allow us to better leverage our footprint,” Woo said.
“We have long been impressed with Vonex’s technical capability, as well as a commitment to customer service and these were significant factors in our decision to partner with Vonex.”
The acquisition is expected to be completed by the end of October 2022.
Last month, Vonex flagged that more mergers and acquisitions (M&A) were on the cards after it posted $331,000 in profit for FY22.
In the telco’s report for the financial year ending 30 June, it flagged it is pursuing a “disciplined M&A growth strategy” for FY23 as it planned to target IT and telco businesses that offer the potential to expand its customer base, geographic presence and product suite.
