facebook facebook MNF Group closes $31m direct biz sale to Vonex | Vonex
News & Insights

MNF Group closes $31m direct biz sale to Vonex

MNF Group Sale

MNF Group has finalised its deal with Vonex for the sale of part of the company’s direct business for $31 million.

The two signed the conditional term sheet on 7 June and MNF Group told shareholders today that all conditions of the deal had been satisfied including detailed due diligence.

At the time Vonex said the deal would help materially expand its footprint of small-to-medium enterprise and residential customers across Australia, as well as bring in new channel partners.

As part of the deal, Vonex also agreed to enter into an exclusive Symbio wholesale supply agreement for phone numbers and minutes for five years.

Both Vonex and MNF have now signed a binding agreement with the deal set for completion in early August, according to MNF Group.

It added that the divestment of its direct business was in line with its strategy to simplify the business and drive growth in its CPaas (communications platform as a service) and UCaas (unified communications as a service) voice services.

MNF said proceeds from the sale would be reinvested in the wholesale business and also used to fund overseas expansion.

In a release to the ASX today, Vonnex said The acquisition will deliver a significant improvement in scale, resulting in a combined pro forma FY21 Revenue of $33.7 million.

It added that the direct business was anticipated to deliver $5.5 million in EBITDA for the current financial year, resulting in an underlying pro forma EBITDA for the combined businesses of $6.3 million.

The deal comes at the same time as the appointment of a new board director for MNF Group, Anne Ward.

Ward succeeded Terry Cuthbertson, who announced his intention to leave the board in October 2020. Cuthbertson was founding chair of MNF, joining the board before the company listed on the ASX in 2006.

Related Posts
dummy banner

Vonex shares respond positively to stellar June half performance

Telecommunications innovator Vonex Limited (ASX:VN8) has provided a promising update on its retail business with the group achieving total contract value (TCV) of new customer sales of $3.7 million in the June half. This represented year-on-year growth of 65%, illustrating its resilience during the height of the COVID-19 period. Of further encouragement was the exceptional

Read article
dummy banner

Vonex surges 10% as strong growth continues across its businesses

Shares in telecommunications innovator Vonex Limited (ASX:VN8) were up 10% at lunchtime after the company provided an extremely positive update in relation to the company’s operational progress across its wholesale, retail and development arms. Of particular note was the successful integration of the new 2SG wholesale business and expansion of the company’s established, but fast-growing

Read article
dummy banner

Vonex (ASX:VN8) raises $1.4M to fund future growth plans

Telecommunications provider Vonex (VN8) has completed its institutional placement, raising a total $1.4 million to fund future growth initiatives Under the terms of the financing, the company issued a total of 14,736,843 shares at a price of 9.5 cents each Such a price represents a 13.6 per cent discount compared to the company’s last closing

Read article
dummy banner

Vonex shares rise after achieving remarkable growth in recurring revenue

The company has increased its annualised recurring revenue by more than 85% during FY20, with the acquisition of 2SG Wholesale a major contributor to this growth. Vonex Ltd (ASX:VN8) is seeing continued growth in annualised recurring revenue (ARR) underpinned by sustained sales momentum and well-executed mergers and acquisitions. The ARR has increased more than 85%

Read article
dummy banner

NWR Virtual Small Cap Conference Presentation

If you are interested in the progress of Vonex from an investment perspective, watch our CEO Matthew Fahey presenting at the NWR Virtual Small Cap Conference. This is a great opportunity to learn more about our focus, success to date and more. Watch here: Investor Presentation

Read article